Report: AI tools are making deed theft and seller-impersonation fraud easier to carry out

What happened

Deed theft, in which a criminal fraudulently transfers ownership of someone's property, is getting a technological boost, according to a Bloomberg Law report. The report says AI agents can comb through property records, fake key documents and notary stamps, and help scammers misrepresent themselves on video calls meant to verify that a seller is really the owner.

The numbers point to a growing problem. Bloomberg Law cites a September report from the American Land Title Association saying nearly 60% of its members reported a seller fraud attempt in 2025, up from 28% the previous year.

New York's long history with the problem

The report notes that New York City has been the epicenter of deed theft for decades. Mayor Zohran Mamdani established the Mayor's Office of Deed Theft Prevention in April.

According to Jacob Inwald of Legal Services NYC, fraudsters in New York have typically targeted older homeowners facing foreclosure in majority Black and Latino neighborhoods. He named Bedford-Stuyvesant and Bensonhurst in Brooklyn, along with similar neighborhoods in Queens and the Bronx.

Other states are also acting. Bloomberg Law notes that Rhode Island passed legislation this year (2026-H 7551aa and 2026-S 2715A) on real estate fraud.

Why it matters to homeowners

The tools described in the report make impersonation easier, including the kind of video-call checks that were meant to add protection. Homeowners who are older, under financial stress or facing foreclosure may be especially exposed, as the New York pattern shows. Properties with no mortgage or that are vacant can also be attractive to scammers, so it is worth paying attention even if you are not in a high-risk situation.

What you can do

• Check your records. Look up your property on your county recorder or clerk's website every so often to confirm nothing unexpected has been filed.
• Sign up for alerts. If your county offers a property fraud alert service, enroll.
• Watch your mail. Unexpected letters about your mortgage, taxes, a sale or a title change deserve a prompt look.
• Be wary of strangers offering help. Be cautious of anyone who promises to save your home from foreclosure and asks you to sign over documents.
• Get independent advice. Before signing anything about your property, talk to a trusted attorney or a legal aid organization.
• Act quickly if something looks wrong. Contact your county recorder's office and local law enforcement, and consider speaking with a real estate attorney or your title insurer.

Source: Bloomberg Law