Panel warns of rising real‑estate fraud schemes; panelists urge identity proofing, public alerts and legislative fixes

TACIR heard a multi‑member panel detailing rising real‑estate fraud in Tennessee and nationally and received recommendations for administrative and legislative responses.

Panelists described the evolution of fraud from simple email compromises to sophisticated, tech‑enabled social engineering and forgery. Thomas Cronkwright (Certified ID) described business email compromise schemes that hijack transaction emails and wire instructions; he said losses tied to real estate wire fraud have risen materially and urged state action on identity proofing, authenticated wiring instructions and mandatory consumer disclosure about wire fraud risk. Tabitha King (co‑owner, Authority Title and Escrow) and Shanita Baker (Fidelity National Financial) described specific cases where buyers’ cash‑to‑close and sellers’ proceeds were diverted and noted the industry’s heavy operational burden in investigating suspicious transactions. Kelly Groover, Senior Assistant Attorney General, summarized the Attorney General’s Office consumer complaint intake and noted the investigative challenges when bad actors are difficult to locate; she emphasized the importance of consumer education and criminal enforcement resources.

Sumner County Register of Deeds Holly Hemmerich explained that registers of deeds perform administrative recording and do not determine document legality and noted vulnerabilities from electronic filing vendors and paper forgeries; she said registers are proposing legislation to narrow who may e‑file and to vet e‑file vendors. Panelists generally urged better identity verification by notaries and e‑filing vendors, expanded public education and property‑alert programs, and clearer coordination between local registers, title companies, law enforcement and prosecutors. Cronkwright and industry witnesses also described vendor tools that verify identity and authenticate wiring instructions; panelists said cyber‑insurance policies often exclude or limit social‑engineering losses and banking processes and international investigations constrain recovery.