The Boston Division of the Federal Bureau of Investigation is warning property owners and real estate agents about a steady increase in reports of quit claim deed fraud it has received; scams that have resulted in devastating consequences for unsuspecting owners who had no idea their land was sold, or was in the process of being sold, right out from under them.
Known as quit claim deed fraud or home title theft, the schemes involve fraudsters who forge documents to record a phony transfer of property ownership. Criminals can then sell either the vacant land or home, take out a mortgage on it, or even rent it out to make a profit, forcing the real owners to head to court to reclaim their property.
Deed fraud often involves identity theft where criminals will use personal information gleaned from the internet or elsewhere to assume your identity or claim to represent you to steal your property.
“Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home. They’re suffering deeply personal losses that have inflicted a significant financial and emotional toll, including shock, anger and even embarrassment,” said Jodi Cohen, special agent in Charge of the FBI Boston Division. “We are urging the public to heed this warning and to take proactive steps to avoid losing your property. Anyone who is a victim of this type of fraud should report it to us.”
Law enforcement and the FBI have been alerted to the fraud at all points in the process and have received reports involving a variety of fraudulent scenarios, including:
– Scammers who comb through public records to find vacant parcels of land and properties that don’t have a mortgage or other lien and then impersonate the landowner, asking a real estate agent to list the property. Homeowners whose properties have been listed for sale don’t know it until they’re alerted, sometimes after the sales have gone through.
– Family members, often the elderly, targeted by their own relatives and close associates who convince them to transfer the property into their name for their own financial gain.
– Fraudsters known as “title pirates” who use fraudulent or forged deeds and other documents to convey title to a property. Often these scams go undetected until after the money has been wired to the scammer in the fraudulent sale and the sale has been recorded.
The FBI’s Internet Crime Complaint Center (IC3), which provides the public with a means of reporting internet-facilitated crimes, does not have specific statistics solely for quit claim deed fraud, but it does fall into the real estate crime category. Nationwide, from 2019 through 2023, 58,141 victims reported $1.3 billion in losses relating to real estate fraud. Here in the Boston Division, which includes all of Maine, Massachusetts, New Hampshire, and Rhode Island, during the same period, 2,301 victims reported losing more than $61.5 million.
– 262 victims in Maine lost $6,253,008
– 1,576 victims in Massachusetts lost $46,269,818
– 239 victims in New Hampshire lost $4,144,467
– 224 victims in Rhode Island lost $4,852,220
The reported losses are most likely much higher due to the fact that many don’t know where to report it, are embarrassed, or haven’t yet realized they have been scammed.
FBI Boston is working with property owners, realtors, county registers, title companies and insurance companies to thwart the fraud schemes but it’s no easy task. The COVID-19 pandemic changed the way business was and continues to be conducted. More and more people have grown accustomed to conducting real estate transactions through email and over the phone. The remote nature of these sales is a benefit to bad actors.
The FBI can work with its partners to try to stop wire transfers and recover the funds within the first 72 hours.
We urge folks to report fraud and suspected fraud to the FBI’s Internet Crime Complaint Center at ic3.gov.
