The Federal Bureau of Investigation’s (FBI) Boston division issued a warning to real estate professionals and borrowers about increasing reports of fraud targeting transactions across the Northeast.
Many fraudsters have been engaging in a form of fraud that begins with a scheme known as home title theft or quit claim deed fraud, in which bad actors falsify documents to enact a fraudulent transfer of property so they can claim it as their own.
Once they claim ownership of the property, they often either sell it, take out a mortgage on it or rent it for a profit.
Since deed fraud is often enabled by the theft or capture of personal information such as Social Security and driver’s license numbers, FBI officials recommend utmost caution in situations that may compromise valuable personal information.
“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,” Jodi Cohen, special agent in charge of the FBI Boston Division, said in a press release. “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.”
A statement by the FBI identified a variety of scenarios in which quit claim deed fraud has cost homeowners dearly, including:
- Scammers search public records for unoccupied land and homes without mortgages, pretending to be the real owners and asking agents to list the properties. The actual owners later find out their property has been listed; in many cases, after it’s sold.
- Elderly family members are tricked by relatives or acquaintances into transferring property for financial gain.
- Some fraudsters, called “title pirates,” use fake deeds to sell properties. These scams usually remain hidden until the money is sent to the scammer and the sale is recorded.
While the FBI’s Internet Crime Complaint Center (IC3) does not compile statistics specifically regarding quit claim deed fraud, this crime does fall under the umbrella of real estate crime. According to the FBI, from 2019 through 2023, 58,141 victims nationwide reported $1.3 billion in losses relating to real estate fraud.
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 FBI added that full losses are most likely much higher than those reported due to that fact that many victims don’t know where to report their incidents, are embarrassed, or haven’t yet realized they have been scammed.