Homeowners nightmare: Cybercriminals forge property deeds

Perpetrators take advantage of electronic filing services, lack of ID verification

Cybercriminals Forging Property Deeds in Austin
(Getty)

Homeowners in Austin are grappling with a nightmare scenario. 

Cybercriminals are filing forged property deeds at a growing rate in Travis County, effectively transferring homeownership to themselves and leaving victims in legal turmoil, the Austin American-Statesman reported

Multiple suspicious warranty deeds have been filed in Travis County recently, all featuring the same notary stamp with incorrect expiration dates, the outlet reported.

The perpetrators target weaknesses in the property deed filing system, which offers few protections from this malicious practice.

For less than $50, criminals can forge property deeds, falsely declaring the sale of a property and replacing the legitimate owners’ names with their own in official county records. Victims are then left to bear the burden of rectifying the situation through costly legal battles.

Two recent victims, Greg and Jennifer Thompson, found out their house had been stolen when they contested their property’s appraised taxable value and discovered they were no longer listed as the owners of their Austin home. A deed with their forged signatures claimed someone had purchased their property, sending the Thompsons’ lives into disarray.

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Even when the fraudulent nature of these deeds is evident, county offices have no clear process for victims to prove their rightful ownership, leaving them with no choice but to hire expensive lawyers and seek court orders. 

Flaws in the system have allowed cybercriminals to take advantage of electronic filing services like Simplifile. 

The court filing system lacks effective identity verification checks.

The Texas Legislature could take measures to protect homeowners, the outlet said. Lawmakers could give the attorney general or district attorneys the authority to represent victims in court, enabling them to invalidate forged deeds without hiring attorneys. A simplified process could be established for property owners to present evidence gathered by law enforcement officers without legal representation. And clerk’s offices could partner with law enforcement agencies to investigate and remove forged warranty deeds once complaints are filed.

“Unfortunately, the criminal component of our community is getting more savvy, and we just have to do more to protect residents,” Travis County clerk Clerk Dyana Limon-Mercado told the outlet. 

—Quinn Donoghue 

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