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Panel warns of rising real‑estate fraud; panelists urge consumer alerts, identity proofing and tighter e‑filing safeguards
Summary
A TACIR panel on real‑estate and deed fraud presented evidence of escalating wire and deed‑theft schemes, urged consumer alerts, stronger notary identity proofing, e‑file vendor vetting and industry‑led protections such as identity verification and secure wire processes.
A panel convened by TACIR detailed growing real‑estate fraud schemes — ranging from business email compromise and wire‑transfer diversion to quitclaim deed forgery — and urged coordinated responses from registrars, notaries, title companies, law enforcement and the legislature.
Panelists described how fraudsters exploit publicly available property records, impersonate parties in transactions and hijack email accounts to redirect closing funds. Thomas Cronkwright, co‑founder of CertifiedID, described business email compromise (BEC) and noted consumer willingness to pay for security: in a recent survey 79% of Tennessee respondents would pay more to work with a real‑estate professional who prioritizes security. Cronkwright and other panelists recommended identity proofing, authenticated wiring instructions, secure communication channels and incident response/insurance as protective measures.
Holly Hemmerich, Sumner County Register of Deeds and president of the Middle Tennessee Registers Association, explained registers are primarily administrative: they record properly formatted documents but do not determine legal validity. Hemmerich said registers rely on original signatures and notary verification, and she described efforts to narrow who may e‑file to reduce “copy‑and‑paste” fraudulent submissions and to vet e‑file vendors. She also noted paper forgery incidents (e.g., Graceland‑related documents) and urged public education, auditing of notaries and expanded fraud monitoring programs.
Title industry representatives Tabitha King and Shanita Baker (Tennessee Land Title Association) and Kelly Groover (Tennessee Attorney General’s Office) emphasized the sophistication and scale of attacks, cited significant aggregate losses and urged better consumer warnings, mandatory vendor and notary vetting, clearer chain‑of‑custody steps and broader law‑enforcement resourcing. Panelists reported that available cyber insurance and title insurance have limitations and exclusions, making preventative measures critical.
Commissioners and audience members raised options including requiring identity proofing at the register of deeds, limiting who may e‑file, capturing ID copies when documents are presented in person, stronger notary credential checks and consumer alerts on wire fraud risks. Panelists and registrars agreed these measures merit legislative consideration; the commission will include the panel’s findings in a forthcoming draft report required under Public Chapter 941 (Acts of 2024).
