New Jersey deed fraud is rising. Watchdog urges state action.

The schemes can cost victims their homes or land and lead to lengthy legal battles.

A state watchdog has urged lawmakers to combat rising deed fraud in New Jersey by strengthening regulations and allowing homeowners to freeze their property titles, similar to the way they can now freeze their credit.

Deed fraud, sometimes called title theft, occurs when someone impersonates a property owner and transfers or sells the property without the owner’s knowledge. The schemes can leave homeowners facing the loss of their homes or land, along with lengthy and expensive legal battles to reclaim ownership.

New Jersey had at least 135 reported deed-fraud incidents between 2020 and March 2026, the second-highest total in the nation behind Florida, according to the FBI.

Federal officials first warned Garden State residents about deed-fraud schemes in May 2024, when the FBI issued a public warning that fraudsters were stealing land out from under New Jersey property owners.

“Using a variety of techniques, fraudsters have been impersonating the true owners of real property, wresting away control, transferring title, and recording the deed to those properties in a new name, all before the victim learns of the loss,” the New Jersey State Commission of Investigation (SCI). wrote in its Sept. 10 report on deed fraud.

The FBI said the true tally is likely higher because many incidents either go unreported or are classified as another type of fraud.

“The raw number of seller impersonation frauds may still be relatively low, but is increasing,” the commission wrote. “Worse still, each individual victim generally suffers enormously. Whether the scam involves title to developed or undeveloped land, it often results in the loss of a victim’s most valuable asset.”

The number of complaints nationwide rose from 9,359 in 2024 to 12,368 in 2025, according to the FBI. Reported monetary losses increased from about $173.5 million to $275 million during the same period.

The schemes often target older adults. One real estate publication estimated that older adults accounted for about 44% of all dollar losses, according to the report.

The schemes often begin with someone claiming to own a particular property. The fraudster then uses a variety of techniques, including remote closings, wire transfers, and fraudulent notarizations, to sell the property to an unsuspecting buyer before the actual owner finds out.

The COVID-19 pandemic made remote transactions far more common, but it also created opportunities for fraudsters.

“The reduction in face-to-face real estate transactions, from the initial stages on, has made it more difficult for many in the process to detect potential frauds, making it easier to impersonate legitimate property owners and submit fraudulent instruments for recording,” the commission wrote.

State lawmakers have introduced a raft of bills aimed at curbing deed fraud, including one that would require every county to establish a property alert system notifying owners whenever a lien, deed, or any other document affecting the property is recorded.

But every proposal has stalled in the Legislature, according to an online review of bills.

The report recommended a multifaceted approach to combating the fraud. That could include requiring counties to allow homeowners to freeze title transfers, similar to the way they can freeze their credit. Requiring two-factor authentication to lift the freeze could further tighten security.

Every county except Hunterdon and Warren already uses some kind of alert system. But the counties frequently use different programs and processes, meaning the state has not built a uniform system to combat deed fraud.

Homeowners can purchase various alert or insurance services on the private market, but many offer little protection and can be expensive, according to the report.

Despite the growing problem, only three states — Virginia, Tennessee, and Maine — are considering comprehensive measures to combat it, according to the report.

“To the extent New Jersey decides to take concerted action against the deed fraud problem, it will be at the forefront,” the commission wrote.

The commission recommended a suite of reforms that could help the state manage these uncharted waters.

One measure would require real estate licensees to verify the identities of property sellers before accepting a listing. Another would require notaries to use a centralized online log to track their activities.

Other proposals would allow people to freeze their property titles, revamp property alert systems, and fast-track litigation over fraudulent deeds, according to the report.

The commission acknowledged that the reforms would cost money but said that is not a reason to stand still.

“The failure to act inevitably will lead to more harm for defrauded New Jersey property owners,” the commission wrote. “The state has the opportunity to take the lead on what everyone involved agrees is a serious problem by adopting a comprehensive, forward-looking response.”