Real Estate Fraud Losses Hit $275.1M: Is Your Seller Really the Owner?

Real Estate Fraud Losses Hit $275.1M: Is Your Seller Really the Owner?

Real estate fraud losses jumped from $173.6 million in 2024 to $275.1 million in 2025, a 58.5% increase based on the FBI’s 2025 IC3 Annual Report. The FBI logged 12,368 real estate fraud complaints for 2025, up from 9,359 a year earlier.

Those numbers usually turn attention toward wire fraud at closing. Another risk can start much earlier. Someone may contact an agent, title company, or lender while posing as the true property owner. If the record looks normal at first glance, that false identity can move through listing and closing workflows before anyone questions it.

So, is the seller really the owner? A matching name on a property record does not confirm identity. Real estate teams should compare ownership records with the person and contact details behind the request.

That makes seller verification worth addressing before a property reaches the closing stage.

Seller Impersonation Creates Risk Before Closing

Seller impersonation often begins with real property data paired with stolen or fabricated identity details used to appear legitimate.

It is related to deed or title fraud, but not identical. Impersonation focuses on posing as the owner to complete a transaction, while deed fraud can involve forged documents that transfer ownership without the owner’s knowledge.

Vacant or lightly monitored properties carry added risk. The National Association of REALTORS® 2025 Deed & Title Fraud Survey found 63% of respondents were aware of fraud in their markets over the prior year, with 52% involving residential land. NAR notes the sample is limited and not a national rate.

One vacant land deed fraud attempt was stopped after the real owner caught the unauthorized sale before closing. The case shows how quickly seller impersonation can move once someone has enough property and owner information to appear legitimate.

Financial impact can also be significant. CertifID’s 2026 State of Wire Fraud report found that seller net proceeds fraud accounted for 12% of its 2025 recovery cases, with a median loss of $343,497.

A vacant parcel, remote seller, cash offer, or fast close alone does not indicate fraud. Risk increases when multiple details do not align.

What Seller and Property Data Can Reveal

A seller may know the owner’s name and still be an impersonator. Public records help, but a single match is not enough.

Key checks include:

• Does the seller name match the current owner record?
• Does the owner mailing address align with the contact person?
• Is the phone number valid and consistent with other data?
• Does a trust, estate, or LLC have clear authority?
• Do recent transfers match the seller’s story?
• Have contact or payment instructions changed mid-process?

The goal is not automatic rejection but identifying when further review is needed.

How Seller Impersonation Can Appear in a Workflow

A vacant-land lead may look legitimate: correct owner name, parcel address, and a request for a fast out-of-state cash sale.

Issues may emerge when details do not align, such as a mismatched mailing address, weak phone linkage, refusal of video verification, or insistence on using a specific notary.

Individually, these are not proof of fraud, but together they may warrant manual review before listing.

Risk can also surface at closing when bank instructions suddenly change. Any new contact or payment details should be independently verified rather than accepted at face value.

5 Verifications to Add Before a Seller File Moves Forward

These checks help agents, title teams, and lenders flag files that need closer review.

1. Compare Seller Claim With Property Records

Check owner name, mailing address, parcel ID, and transfer history.
A match supports the file but does not confirm identity. A mismatch may still be valid (trust, estate, LLC, or recent sale) and should be clarified.

2. Compare the Person With Contact Data

Review names, addresses, phones, and aliases together.
Differences may be explained by relocation or name variations. If inconsistencies remain, request additional documentation or verify through an established contact method.

3. Validate the Phone Number Before Outreach

Check if the number is active and identify line type (mobile, landline, VoIP).
Use DNC screening before covered outreach. These steps support contact decisions but do not confirm ownership.

4. Verify High-Risk Changes Through a Known Channel

Treat changes to wire instructions, contact details, notaries, or signing plans as separate events.
Reconfirm using previously verified contact methods, not the new information provided in the change request. Document all verification steps.

5. Escalate When Multiple Signals Conflict

One issue may have a reasonable explanation. Several mismatches may justify closer review.

If ownership, contact data, and transaction behavior don’t align, escalate for additional documentation, independent verification, or fraud/legal review.

How Searchbug Can Support Seller and Property Verification

Searchbug tools add structured data to seller reviews before a transaction moves forward, supporting, but not replacing documents, title records, internal procedures, and other verification steps.

Compare the Seller’s Information With Property Records

When a seller claims ownership, teams can use Searchbug’s Property Records API to review nationwide property data.

Key data may include owner names, mailing addresses, parcel IDs, transfer history, and property details like size, taxes, and legal descriptions.

These fields can be compared against transaction details. Mismatches or undisclosed transfers may warrant further review. However, matching data does not verify identity and should be used alongside title work and supporting documentation.

Check Whether Person Data Supports the Seller Record

Teams can then use Searchbug’s People Search API to see whether independent person data aligns with the seller.

Results may include names and aliases, current and historical addresses, phone numbers, relatives, and public-record indicators such as bankruptcies, liens, and judgments.

This data can help resolve inconsistencies or support details like prior addresses or name variations. Conflicts may justify additional documentation or alternative verification methods.

People Search does not confirm ownership or identity; results depend on available data.

Validate the Phone and Review DNC Status Before Outreach

Before contacting a seller, teams should validate the phone number using Searchbug’s Phone Validation with DNC Check.

The tool confirms whether a number is active, identifies its line type (mobile, landline, or VoIP), and checks it against federal and supported state Do Not Call lists.

This can help flag invalid numbers and support outreach compliance decisions. However, DNC status is only one part of compliance, alongside consent, exemptions, call purpose, state rules, and internal suppression lists.

Phone validation does not confirm ownership and should follow initial seller identity review.

Seller Verification Should Start Before Closing

Wire fraud controls still matter. Seller impersonation adds an earlier question: does the person asking to sell the property align with ownership and contact data?

Start with property records, then use person data to confirm alignment. Phone validation and DNC screening support outreach once identity checks are underway.

No single match confirms legitimacy, and no single mismatch confirms fraud. Consistent data supports progression; conflicting data may require escalation or additional review.

Verification is most effective before closing, rather than waiting for changed payment instructions or final disbursement to reveal a problem.

TL;DR

Real estate fraud losses reached $275.1 million across 12,368 FBI IC3 complaints in 2025, up from $173.6 million in 2024. Seller impersonation can occur before closing when someone uses real ownership data to pose as the seller. Vacant property, remote communication, or mismatched records may warrant review, but none alone proves fraud.

Property Records, People Search, and Phone Validation with DNC Check can help teams review ownership, person, and contact data. Teams should compare results, resolve mismatches, and escalate higher-risk files for further review.

Create a free Searchbug API Test Account with $10 in credits to test the relevant tools with your workflow. Teams reviewing larger files or working without an API can also use Bulk Processing.