American Land Title Association Unveils New Policies to Combat Fraud in Real Estate Transactions

Innovative Solutions by ALTA to Tackle Real Estate Fraud

In today’s world, where fraud and cybercrime are on a steady rise, the American Land Title Association (ALTA) is stepping up to protect homeowners against these evolving threats. On August 20, 2025, ALTA announced the introduction of two new policy endorsements aimed explicitly at combating the alarming trend of seller impersonation fraud, wherein criminals forge documents to unlawfully sell properties and misappropriate the proceeds.

According to the FBI's Internet Crime Complaint Center (IC3), losses from cyber-enabled crimes in the real estate sector reached an astonishing $174 million in 2024 alone. With average claims for title insurance fraud exceeding $143,000, it’s clear that these fraudulent activities can have devastating financial consequences for homeowners. Recognizing this urgent need, ALTA's new endorsements allow both new and existing homeowners to enhance their coverage against potential forgery of deeds or mortgages, thereby offering essential post-policy protection.

The implications of these endorsements are profound. Homeowners can now secure their most significant investment—an assurance that they are protected from legal and financial repercussions arising from forged documentation on their properties. As Chris Morton, ALTA's CEO, articulated, “With criminals harnessing advanced technology to perpetuate sophisticated seller impersonation schemes against unsuspecting homeowners, new products like the policy endorsements are needed to keep the American Dream of homeownership intact.” The introduction of these endorsements not only extends ALTA’s pioneering Homeowner’s Policy of Title Insurance, setting a higher standard for forgery protection before and after the closing process.

In addition to policy updates, ALTA has also revised its Best Practices framework to arm title agents with the tools necessary to recognize and address these emerging criminal tactics effectively. This updated framework proposes new industry-wide standards for identity verification during real estate transactions. Key measures include specialized staff training to identify impersonation attempts, heightened scrutiny in the selection of notaries and signing agents, and additional verification protocols for third-party professionals involved in closings. Moreover, defined protocols for responding to suspected acts of fraud have been set in place to ensure swift and effective actions can be taken when necessary.

Elizabeth Blosser, Chief Strategy, Communications and Innovation Officer at ALTA, expressed optimism about the impact of these endorsements. “These policy endorsements set a new bar for how to help consumers address these crimes,” she stated. “If purchased, they should provide peace of mind to homeowners by offering long-term protection from a risk that is both real and increasing.”

Recognizing the importance of consumer education, ALTA is also launching a series of informative resources, including a video and several infographics. These materials will illustrate the threat of seller impersonation fraud, empowering homeowners with the knowledge they need to safeguard their properties.

As the landscape of real estate transactions continues to evolve, ALTA's proactive measures reflect a pivotal understanding of the critical role that title insurance plays in protecting homeowners. Founded in 1907, the American Land Title Association is a vital entity in the real estate sector, representing over 6,000 members, including title insurance companies and real estate professionals. Their commitment to safety and security in property transactions is evident in their latest initiatives, promising a safer future for homeowners navigating the complex world of real estate.

In conclusion, by introducing these essential policy endorsements, the American Land Title Association is taking significant steps to combat fraud in real estate transactions. Homeowners can take comfort in knowing that they have access to enhanced protections that not only safeguard their investments but also uphold the integrity of homeownership across the nation.