How to Avoid Real Estate Fraud — And Protect the Title to Your Property
Real estate continues to be one of the most significant financial investments most people make—and unfortunately, that also makes it a prime target for scammers. Title theft, wire fraud, deed fraud, and impersonation schemes have become increasingly sophisticated in recent years. The good news? With awareness and a few preventive steps, homeowners and buyers can significantly reduce their risk.
A Startling Real-World Example: Fairfield, Connecticut
A dramatic case in Fairfield, Connecticut shows how far fraudsters will go—and how costly the consequences can be. In this incident, a scammer impersonated a property owner and fraudulently sold a vacant parcel of land without the real owner’s knowledge or consent.
The fake seller even provided falsified identification and purported to be located abroad. Using a forged power of attorney, they transferred the deed to a developer for about $350,000.
Before the true owner ever learned of the sale, construction began on a $1.5 million home on the lot. The developer and buyers became embroiled in lawsuits, and while a legal settlement was eventually reached to secure a clean title, the incident underscores how even vacant land can be vulnerable to fraud.
This story—which played out over many months before anyone realized something was wrong—illustrates why vigilance and safeguards are essential, especially for out-of-state or absentee owners.
Common Types of Real Estate Fraud
- Wire Fraud: Scammers intercept or forge instructions to redirect closing funds to fraudulent accounts.
- Title/Deed Fraud: Someone illegally transfers the title or deed without the owner’s consent.
- Impersonation Scams: Fraudsters pose as the owner or agent to sell or mortgage property.
- Mortgage Fraud: Unauthorized loans taken out against a property.
Steps to Protect Yourself and Your Property Title
1. Verify All Communications During a Transaction
Always confirm wire instructions and material changes directly by phone or in person with your agent, attorney, or title company using known contact information.
2. Use Secure Portals for Sensitive Documents
Encrypted systems and password-protected files are much safer than email alone, especially on open networks.
3. Sign Up for Property Fraud Alerts
Many counties, including Fairfield and others in Connecticut, offer Property Fraud Alert systems that notify you if any document involving your property is recorded. This is one of the best early-warning tools available.
4. Keep Personal Information Private
Shred sensitive mail, use strong passwords, and turn on two-factor authentication whenever possible.
5. Review Title Insurance Coverage
Title insurance can protect you against many hidden risks—ask about options that cover identity fraud or forged deeds.
6. Monitor Vacant or Out-of-State Properties Closely
Properties you don’t visit often are more likely to be targeted. Regular checks of public records can catch unauthorized changes.
7. Protect Your Mail and Identity
Mail theft often leads to stolen identities. Request electronic statements when possible and consider a locked mailbox.
If You Suspect Fraud
Act immediately. Contact local law enforcement, your attorney, and the title company. If you believe fraudulent deeds or liens have been recorded, reach out to your town or county clerk’s office to flag the issue and explore remedies.
Takeaway
Real estate fraud can happen to anyone—but it doesn’t have to ruin your investment. Staying informed, using available fraud-alert tools, and maintaining strong verification practices are your best defenses. The Fairfield case is a powerful reminder that vigilance is worth it — protecting your title today can save you time, money, and heartache tomorrow.
