Panel warns of rising real‑estate fraud, urges ID proofing, e‑file vetting and consumer alerts

A multi‑agency panel convened to brief the commission on real‑estate and title fraud in Tennessee, telling members the state is experiencing growing losses from quick‑claim deed fraud, business email compromise (BEC), wire diversion and other schemes that target owners, senior adults and vacant properties.

Panelists included Thomas Cronkwright of Certified (identity and wire‑authentication technology), county registers of deeds, title industry representatives (Tennessee Land Title Association and Fidelity National Financial) and a senior assistant attorney general. They reported fraud types ranging from forged deeds and fake notarizations to sophisticated phishing and account‑takeover schemes that divert closing wires. Panelists cited national loss figures and described local stories in which homeowners lost tens of thousands, sometimes recovered with law‑enforcement help, and noted that Tennessee reported hundreds of cybercrime complaints and significant aggregate losses in recent FBI/IC3 figures.

Recommendations from the panel and discussion included: strengthen identity proofing for notaries and buyers/sellers; vet and restrict who can e‑file (create a vendor vetting process) to reduce automated copy‑paste fraudulent submissions; encourage registers of deeds to expand property‑record monitoring programs and public alerts; require or promote secure authenticated wire‑instruction channels and consider insurance or coverage options as technical and market solutions; improve public education and consumer alerts; and ensure prosecutors and investigators have the technical resources to pursue cross‑jurisdictional cyber actors. Panelists said current insurance products and cyber policies have limits and exclusions for social‑engineering losses.

Commission members asked about requiring ID at time of recording, limits of register offices, notary responsibilities and e‑filing vendor controls. Registers said their role is administrative — they record documents that meet statutory formatting and signature/notary requirements but do not determine legal validity; they noted many filings arrive by mail or electronic vendors. Title industry representatives urged collective action across realtors, lenders, title agents and registers and wider public notification of fraud risk. The attorney general's office described difficulty prosecuting cases when perpetrators are overseas and urged coordination on consumer education and forensics capacity. Commissioners discussed potential statutory or administrative fixes and directed staff to incorporate the panel's input in a draft report for the summer meeting.