ndp | analytics has officially published results from a new study, which focused on analyzing seller impersonation fraud across US. To understand the significance of such a study, we must take into account that, according to the American Land Title Association (ALTA), the year 2023 saw an estimated 28% of title insurance companies experiencing at least one seller impersonation fraud attempt. In fact, the month of April alone would witness two in 10 title companies coming up against such attempts. In case you weren’t aware regarding how this type of fraud actually works, it basically occurs when fraudsters impersonate property owners to sell property that they do not own. Markedly enough, as fraudsters usually target non-owner-occupied properties, it can take months or even years for the actual property owner to discover the fraud. All in all, seller impersonation fraud affects both title insurance companies and their customers. However, fortunately enough, ndp’s study noted that these title insurance companies are no longer unprepared. In fact, going by available details, almost 91% of the title companies surveyed already provide, or at lease plan to provide education and resources to train employees on fraud. Reached upon after taking into account the perspective of more than 783 title companies, the study’s research also show that seller impersonation fraud often is caught before the real estate deal is completed, with over 46% of companies claiming to identify and prevent fraudulent transactions before closing. This came against 26% companies that only got to know after the deal was closed. In 2023, 16% of title companies who had seller impersonation fraud attempts also paid claims. More on the given study would reveal how, in the 46 states where regulators have approved enhanced policies, 42% of customers choose policies well-equipped to protect their property from future forgery.
Next up, ndp’s study dug into common characteristics of seller impersonation fraud which included notarization issues and use of a property owner’s legitimate non-public personal information. You see, if we put our stock in the provided data, the most common notarization issues were fake notary credentials, accounting for more than 43% of the total cases. On the other hand, the use of real notary credentials without permission was deemed as responsible in well over 31% of the cases. Another detail worth a mention here is rooted in the way ndp’s research taught us that, when it comes to seller impersonation fraud, possible red flags can include vacant land transactions, requests for use of an unknown notary and all-cash transactions. On a more concrete note, requests for all-cash transactions and mail-away signings using an unknown notary were found to carry a substantially higher risk of fraud, with 88% and 86% of companies respectively identifying these actions as indicators of risk.
“Title insurance offers protection when seller impersonation fraud does occur,” said Diane Tomb, CEO of American Land Title Association (ALTA). “Both the ALTA Owner’s Policy and ALTA Homeowner’s Policy cover buyers who fall victim to forgery before a property purchase. Additionally, the ALTA Homeowner’s Policy protects the owner against a third party who fraudulently transfers the property in the future.”
Founded in 2000, ndp | analytics has risen up by applying official statistics, complemented through proprietary data, to produce quantitative and qualitative solutions that bolster its clients position and bottom-line messaging. Constantly after the goal of presenting findings and tailoring the narrative to effectively reach target audiences, the company leverages customizable deliverables, such as white papers, factsheets, infographics, and videos to duly deliver its message. ndp | analytics’ excellence in what it does can also be understood once you consider that its work has already earned a mentioned in the Economic Report of the President, national and local media, Congressional testimonies, and by Congressional leaders. Building upon that validation is company’s own clientele, which includes small and large trade associations, Fortune 100 companies, small and medium-sized enterprises (SMEs), PR agencies, and leading law firms
