realestate

Delaware official sounds alarm on property theft, citing inevitable nature of crime.

Delaware sees surge in property fraud as scammers use AI to forge documents, learn about alert tools.

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n the shadows of Delaware's "Race to Record" system, a new wave of property crime is emerging. Cybercriminals are leveraging artificial intelligence and deepfake technology to forge deeds and steal real estate, leaving victims in their wake. The crimes may sound like something out of a thriller novel, but they're all too real.

    In Kent County, Recorder of Deeds Eugenia Thornton has sounded the alarm on this growing threat. With the state's approval of remote and online notary services in 2023, the system has become increasingly vulnerable to swindlers. Using AI-technology, scammers can file forged documents that are nearly indistinguishable from legitimate records.

    The scams often unfold when fraudsters assume a homeowner's identity, forge documents, and list the property for sale on platforms like Zillow and Realtor.com. Transactions are frequently cash-only and conducted online, making it difficult to detect the fraud before it's too late. "There is no way to prevent this crime from happening," Thornton said.

    To combat the threat, each county in Delaware has launched free monitoring services to alert residents to suspicious activity involving their property. New Castle County offers AlertMe, Kent County provides Property Fraud Alert, and Sussex County manages Recording Activity Notification Service. These systems can provide an extra layer of protection against property theft schemes, which often involve forged documents and cash-only transactions.

    In a state where quitclaim deeds allow property transfers without an attorney, scammers are exploiting a loophole to steal properties. By the time fraud is detected, victims may face a lengthy and expensive legal battle to reclaim their property. Thornton's office maintains a webpage dedicated to "house-stealing" crimes, sharing articles and news reports to raise awareness.

    In 2023, the Kent County Realtors Association reported four fraudulent property listings in Dover. Over the next year, Delaware State Police investigated similar scams in Lebanon, Felton, and Harrington. To stay ahead of these scammers, residents are urged to contact the Delaware Attorney General's Consumer Protection Unit at (302) 577-8600 or email [email protected].

    County-level solutions:

    * New Castle County: AlertMe

    * Kent County: Property Fraud Alert

    * Sussex County: Recording Activity Notification Service

    These services can be particularly useful in situations involving:

    * A loan taken out using the property as collateral

    * A lien placed on a property

    * A co-owner filing documents without consent

Delaware official warns of inevitable property theft, citing rising crime rates.