FBI Issues Warning To Homeowners About ‘Title Pirates’ Scam That Could Cost Them Everything

The FBI is warning homeowners about a terrifying new scam that could leave residents vulnerable to so-called "title pirates."

The Boston office of the FBI has opened an investigation after uncovering a series of stolen land scams and attempted property thefts. Agents are now urging homeowners and real estate professionals across the United States to be on high alert for these "title thefts."

This warning follows a series of troubling findings uncovered by I-Team investigations, which revealed numerous cases where victims had their land stolen. According to CBS News, fraudsters are impersonating property owners by using fake driver's licenses and other forged documents to illegally sell land they do not own.

One such victim, Halla Shami Jakari, shared her story with WBZ-TV’s I-Team. Halla explained that she had never sold her vacant land in Concord, yet was horrified to find that the property was not only sold without her knowledge, but that construction had already begun on it by a new buyer.

Halla and her husband, Omar, discovered that fraudsters had seized their plot and sold it to unsuspecting buyers.

Omar expressed the emotional toll the scam had taken on them, saying, "They stole our dream."

The FBI is advising all property owners, especially those with vacant or undeveloped land, to regularly check public records to ensure their titles have not been tampered with. Authorities also recommend working closely with trusted real estate professionals and verifying all transactions to avoid falling victim to these increasingly sophisticated scams.

Online scammers can steal and sell land

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Another man, John Grimes from Plymouth, said he bought his home six years ago but was shocked when an attorney contacted him in September of last year to inform him that his house was listed for sale.

Grimes recalled being at home when an engineering firm unexpectedly knocked on his door to discuss a plot plan for the property. He shared that his family had nearly been victimized before, explaining that his parents almost lost their Cape Cod waterfront access land to scammers.

"I explained to him, 'Don't do anything; you are caught up in a scam!' I was just like, 'Oh my God, this is still happening,'" he said. "My mother was in a state of panic; she said, 'Absolutely not, the land is not for sale,'" Grimes added.

Following the incident, Grimes filed a fraud report with the FBI and enrolled in free notification alerts to monitor any activity related to the registry of deeds.

"I got a phone call from a lawyer just outside of Boston, and he had received a request asking him to facilitate a closing with an e-signature. Everything was all set. But it wasn't my real signature," Grimes told the Daily Mail.

Had he not received that phone call, it might have been too late to save his property after a purchase and sale agreement had already been made using his forged signature.

Understanding Title Theft

Title theft can be a complex issue that often goes unnoticed until it's too late. According to Nolo.com, title fraud typically involves someone posing as the property owner and selling the property to an unsuspecting buyer. This can occur due to inadequate property record checks or outdated title insurance policies.

Experts suggest homeowners should regularly check their property records and invest in title insurance that offers comprehensive protection against such scams. Vigilance and proactive measures are key to safeguarding one’s assets in today’s digital age.

Thousands of people have discovered that thieves stole their land and sold it to others.

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Shedding light on the situation, the FBI stated it cannot comment on specific cases but noted that thieves appear to be targeting elderly individuals, taking advantage of the digital nature of modern contracts to commit the crimes more easily.

"Our elderly population [is more at risk] because they are more likely to own vacant pieces of land that they have had for quite some time, and they are also more likely to own homes without any mortgages on them," FBI Special Agent Vivian Barrios told CBS. "Because those have the biggest benefit to the criminal actor."

Although land theft has been rising nationwide, investigators in Boston report that cases are becoming increasingly common in their area, prompting the FBI to issue a warning about the growing threat of so-called "title pirates."

Between 2019 and 2023, approximately 2,301 residents across Maine, Massachusetts, New Hampshire, and Rhode Island fell victim to land theft, resulting in more than $61.5 million in losses.

During the same period, the FBI's Internet Crime Complaint Center recorded 58,141 reports of real estate theft nationwide, with total losses amounting to $1.3 billion. Special Agent Barrios is encouraging victims to report any suspicious activity as soon as possible.

"We find that within a 24-hour window, we can sometimes get to the money before it's left the account, and the banks, together with us, can sometimes get the money back to the victims," Barrios explained.

Legal professionals emphasize the importance of understanding one’s rights in property ownership. Nolo notes that educating homeowners about title insurance and the potential risks can significantly reduce incidents of title piracy. Homeowners should consult with real estate attorneys to clarify their ownership status and seek guidance on protecting their assets.

Additionally, establishing alerts for any changes in property records can serve as an early warning system against fraudulent activities. Such proactive steps can make a considerable difference in maintaining property security.

As the threat of title theft continues to grow, homeowners must take proactive steps to protect their properties. Legal experts highlight that frequent monitoring of property records and understanding title insurance options are essential. By consulting with real estate professionals and staying informed about potential scams, individuals can better safeguard their investments.

Ultimately, the responsibility lies with homeowners to educate themselves about their rights and available protections. Awareness is the first step toward prevention, and it can significantly mitigate the risks associated with title theft.