Cyber-enabled crime and fraud produced $174 million in losses in the real estate sector during 2024, with seller impersonation and forged deeds increasing. Twenty-eight percent of title insurance companies experienced at least one seller impersonation attempt in 2023. Average title insurance fraud and forgery claims exceed $143,000, imposing severe financial and legal burdens on homeowners. ALTA introduced two title insurance endorsements offering post-policy protection against forgery for new and existing homeowners, including the duty to defend when forged documents are recorded. The endorsements expand affordable options where the Homeowner's Policy of Title Insurance is not available or not selected.
According to the FBI's Internet Crime Complaint Center (IC3) report, cyber-enabled crime and fraud resulted in losses of $174 million in the real estate sector during 2024. Seller impersonation fraud, where criminals forge deeds to illegally sell someone else's property, have increased, with 28% of title insurance companies experiencing at least one attempt in 2023. These crimes can derail lives, drain savings, and force families into costly legal battles simply to defend what's already theirs.
In fact, the average title insurance fraud and forgery claim costs more than $143,000, which is more than twice the national average salary in the U.S. That's why ALTA has introduced two new title insurance endorsements that offer post-policy protection against forgery. These endorsements allow homeowners whether they're purchasing a new policy or already have an existing one to add coverage that addresses a pressing threat.
This market-driven move builds on what began in 1998, when ALTA developed the Homeowner's Policy of Title Insurance, which provides enhanced coverage compared to the standard Owner's Policy. The enhanced policy was created in response to calls for stronger consumer safeguards. It was a big moment, marking the first time buyers could get coverage for problems like forgery that might arise after they moved in. However, not all policyholders have historically been offered or opted into this more comprehensive coverage,
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