FBI Issues Warning on Seller Impersonation

The FBI has issued a public service announcement (Alert No. I-061626-PSA) warning of an identity theft scheme in which criminals pose as the owners of vacant land parcels and attempt to sell the property out from under them – without the true owner ever knowing.

According to the FBI, the scheme typically unfolds in three stages. Fraudsters first gather an owner's personal information from public county records, data brokers, phishing schemes, or the dark web, then build a false identity around it using fake driver's licenses or passports, newly created email accounts, and internet-based phone numbers. Posing as the owner, they then approach a local real estate agent and title company to list and sell the parcel – in at least one case producing a fabricated deed to make the transaction appear legitimate. Finally, they direct the sale proceeds to a co-conspirator, often an attorney located in another state.

Red flags to watch for in a transaction:

• The seller communicates exclusively by email, text, or VoIP number and declines to meet in person, citing illness, travel, or a personal emergency
• The seller pushes for a rapid closing and may price the property below market to speed things along
• The seller shows limited knowledge of the property, can't produce basic documents such as surveys or tax records, or gives inconsistent details
• Disbursement instructions involve an international wire, a wire to an account under a different name, or an account in a location with no connection to the property or seller
• Documentation irregularities, such as deeds notarized in a foreign country

Steps that can help verify a seller's legitimacy:

• Send a certified letter to the owner's address of record on the land tax rolls to confirm the party you're dealing with is the actual owner
• Encourage customers to enroll in recording notification services where the County Recorder, Register of Deeds, or County Clerk offers them, so owners are alerted when any document is recorded in their name
• Be aware that standard owner's title policies may include forgery protection and cover the legal costs of clearing title – a point worth understanding when these claims arise post-closing

Reporting: Victims and industry professionals who encounter this scheme should file a complaint with the FBI's Internet Crime Complaint Center at www.ic3.gov, including any available contact information (IP and email addresses, phone numbers, social media accounts), bank account details used to receive proceeds, and information about third parties involved — including attorneys, brokers, marketing agents, or financial-sector employees assisting with the transaction.