In all the recent investigation into the value of title insurance, there is a decided and unfortunate gap in the discussion about the full range and depth of the services a title agent provides in the course of the transaction

The most important item overlooked is the extraordinary investment in technology and daily efforts title agents invest in protecting their customer’s identities, preventing the illicit sale of property by fraudsters, and most recently, with the new FinCEN Residential Real Estate Reporting (RRE) requirement, the assistance they provide the federal government in combatting money laundering via real estate transactions.

Identity Theft

The American Land Title Association’s Best Practices Guidelines includes detailed requirements for adopting and maintaining an information security plan and a  privacy plan to protect customer data.

Title agents routinely employ robust password management, including multi-factor authentication, if available, to protect their systems from intrusion. They are also required to engage in timely software updates to prevent data breaches, cyberattacks, ransomware attacks and other exposure of NPI.

Many agents have also taken on the task of gatekeeper for the entire transaction, educating the real estate agent, loan officer, homebuyer and seller on attempts by fraudsters to gain a foothold into the transaction through business email compromise tactics such as phishing and spoofing, and providing all parties with instructions on how to safely share information throughout the process.

Illicit Sale of Property

Although bogus sales of someone else’s property is not a new scam – remember George Parker who famously sold the Brooklyn Bridge multiple times to tourists and investors – the practice has become more common with the advent of more sophisticated methods for creating documentation.

Title agents are trained to spot common red flags in these attempts, such as  sellers asking for quick, all-cash, or under-market deals. These types of fraud attempts are often associated with vacant land, vacation homes or rental property, where the owner is not onsite to be aware of fraudsters walking the property with potential buyers.

To prevent illegal sales, title agents push for additional information and often in doing so, detect resistance from the fraudster which raises further suspicion. They will require in-person identity verification and often review ownership records, taking precautionary measures to contact owners of record directly through other channels to verify the legitimacy of a sale.

If a fraudulent sale is identified, the transaction is halted and the details provided to law enforcement.

FinCEN Residential Real Estate Rule

Recognizing the illicit use of residential real estate for money laundering purposes, the U.S. Treasury Department has created a new a reporting requirement designed to increase transparency in the U.S. residential real estate sector and to combat this practice.

Starting March 1, 2026, the FinCEN Residential Real Estate Rule requires title agents to report non-financed (all-cash) transfers of residential property to legal entities, trusts, or shell companies in the hopes of identifying beneficial ownership behind these illicit deals.

For more than a century, the title insurance industry has taken on the task of protecting the transfer of real estate on many fronts, and the advent of technology has, in many ways, made this task more complex as well as more critically important.

At FAN, we recognize the increasing threats from fraudsters, and we are dedicated to protecting our clients’ data and identities, as well as the integrity of the real estate transactions we manage. Contact us today to learn how we can help you with your next transaction.