As real estate scams become more sophisticated, Realtors and lawmakers are stepping up efforts to combat a growing threat: seller impersonation fraud, a scheme where criminals pose as property owners to illegally sell or mortgage homes they don’t own.

These scams are on the rise across the U.S., with cases reported in states like Arizona, Florida, and Georgia. In one recent incident, squatters in Phoenix managed to sell a home for $200,000—without the rightful owners’ knowledge.

A New Kind of Real Estate Crime

Seller impersonation fraud typically involves criminals stealing or forging identification, creating fake documents, and pressuring real estate professionals to close deals quickly—often in cash.

“Fraudsters are targeting vacant, rental, and second homes—any property that appears unmonitored,” said a spokesperson from the National Association of Realtors. “They’re exploiting fast-paced markets and digital tools to bypass detection.”

Realtors Take Preventative Action

Real estate professionals are taking steps to protect clients and transactions:

Strict identity verification is now standard practice. Many agents require color copies of government-issued IDs and video confirmation from sellers.

Red flag awareness has become a key focus, including unusual urgency, cash-only offers, or sellers unwilling to meet in person.

Collaborations with title companies are essential. These partnerships help ensure ownership records are accurate and up-to-date.

Some agents are even using new tech solutions to monitor deed records and set up alerts for suspicious changes.

Lawmakers Respond with Tougher Legislation

State and federal lawmakers are introducing legislation aimed at closing the gaps that fraudsters exploit.

In Georgia, House Bill 1292 was recently signed into law, enhancing protections against title theft and unauthorized property transfers. The bill also gives law enforcement more tools to investigate and prosecute offenders.

At the national level, the Federal Trade Commission (FTC) has introduced new rules expanding its authority to act against impersonation scams—both individual and corporate.

Additionally, the No AI FRAUD Act is gaining traction in Congress. The bill would outlaw the use of artificial intelligence to create “deepfake” identities used in scams, such as digitally replicating voices or faces to deceive agents, title companies, and even notaries.

What Property Owners Can Do

Experts urge property owners—especially those who own vacant land, vacation homes, or rentals—to take precautions:

Monitor public records regularly through your county clerk or property appraiser’s office.

Set up alerts for changes in title or deed status.

Secure personal identification documents to prevent theft or misuse.

Work with licensed professionals who follow identity verification protocols.

Real Risks, Real Consequences

As technology continues to evolve, so too do the tactics of fraudsters. Cases involving AI-generated documents and forged digital signatures are becoming more common.

“It's surreal,” said a Phoenix homeowner whose house was sold without her consent. “We found out when a buyer showed up with a moving truck.”

Industry and Government Align on Solutions

Real estate professionals and lawmakers are now aligned in their goal: to protect property owners and restore trust in the market.

"Real estate should be safe and secure for everyone," said a representative from the National Association of Realtors. "We support smart legislation and are working every day to close the door on criminals trying to game the system."

For more information on property fraud prevention or to report a suspicious transaction, visit the Federal Trade Commission or your local real estate association.