Owning a home is one of the primary ways many families build generational wealth. But a growing type of fraud known as deed theft is putting that wealth at risk.

The issue recently gained renewed attention in New York City after the case of a homeowner who advocates say was fraudulently stripped of her property helped prompt Mayor Zohran Mamdani to launch the Mayor’s Office of Deed Theft Prevention. The case also comes as state officials continue prosecuting alleged deed theft schemes across New York.

While the new office is specific to New York City, deed theft can happen anywhere. Here’s what homeowners should know about how the scams work, who is most at risk and what steps can help protect your property.

What is deed theft?

Also known as deed fraud or home title theft, deed theft occurs when someone illegally transfers ownership of a property into their own name without the owner’s knowledge or consent.

According to Allstate, scammers often use forged documents to fraudulently transfer a property’s deed before attempting to sell the home, borrow against it or otherwise profit from property they do not legally own.

In some cases, scammers forge signatures. In others, they persuade homeowners to unknowingly sign documents that transfer ownership of their property.

Although the FBI described deed theft as relatively uncommon in a 2008 warning, real estate fraud has become increasingly costly. In 2023, the FBI recorded 9,521 real estate fraud complaints totaling roughly $145 million in reported losses.

When does a real estate deal become fraud?

Not every aggressive real estate offer is illegal.

Investors can legally purchase distressed properties, make unsolicited offers or buy homes in foreclosure. Deed theft crosses the legal line when ownership is transferred through fraud, forgery or deception.

Some warning signs include:

• Forged signatures on deeds or legal documents
• Being pressured to sign paperwork you don’t fully understand
• Promises that you’ll be able to buy your home back later
• Requests for upfront fees before receiving assistance
• Someone falsely claiming authority to act on your behalf

If ownership changes without your informed consent, or documents are falsified, the transaction may constitute criminal fraud.

Who is most likely to be targeted?

Anyone can become a victim of deed theft, but scammers often look for properties they believe will be easier to steal.

According to New York Attorney General Letitia James’ office, common targets include:

• Vacant or abandoned homes
• Vacation or second homes
• Properties in foreclosure
• Homes with tax liens
• Properties whose owners recently died without clear estate plans

Older homeowners are also frequent targets because many have accumulated substantial home equity that scammers attempt to exploit.

The U.S. Army has also warned that military families may face increased risks because deployments and relocations can leave homes unattended for long periods.

Why Black homeowners are disproportionately affected

Advocates say deed theft is more than a financial crime. It is also an issue of racial equity and generational wealth.

In New York City, officials have warned that scammers frequently target Black neighborhoods and Black homeowners experiencing financial hardship.

“We have long known that deed thieves specifically target Black neighborhoods and Black homeowners in distress,” said Christine Clarke, commissioner and chair of the New York City Commission on Human Rights. Immigrants have also been targeted by thieves.

The problem is rooted in decades of unequal housing policies.

Many Black families built wealth through homes that have been passed down across generations. In some cases, inherited properties—particularly those without clear wills or formal estate planning—can become especially vulnerable to ownership disputes and fraudulent transfers.

Combined with the lasting effects of discriminatory lending and historic barriers to homeownership, deed theft has become another threat to preserving generational wealth in Black communities.

Immigrant homeowners have also been identified as frequent targets.

How to protect yourself from deed theft

Experts recommend several steps homeowners can take to reduce their risk:

• Never sign documents you don’t fully understand.
• Hire your own attorney before signing property documents rather than relying on attorneys recommended by buyers or investors.
• Be skeptical of anyone requesting upfront fees or promising you’ll regain ownership after signing over your property.
• Monitor your credit reports for suspicious activity.
• Pay attention if property tax or utility bills suddenly stop arriving.
• Check whether your county clerk offers property notification alerts whenever documents are filed involving your home.
• If available in your state, consider using a transfer-on-death deed to clearly identify who should inherit your property.

Taking these precautions can help homeowners identify potential fraud before ownership changes occur.

What should you do if you believe you’ve been targeted?

Time is critical. If you suspect someone is attempting to steal your property:

• Contact an independent real estate attorney immediately.
• Report the suspected fraud to your local or state authorities.
• Preserve any documents related to your property.
• Contact homeowner assistance programs available in your state.

In New York, homeowners can seek help through the Homeowner Protection Program (HOPP), a network of housing counselors and legal service providers approved by the attorney general’s office.

New York City residents can also contact the Department of Finance, which now oversees the newly created Mayor’s Office of Deed Theft Prevention.

Why the issue is receiving renewed attention

The latest push comes after New York City Council Member Chi Ossé was arrested, as Blavity reported, while protesting the eviction of Carmella Charrington, whose supporters allege her home was fraudulently taken through deed theft.

The case drew widespread attention and helped spur the creation of the city’s new prevention office.

Meanwhile, Attorney General James has secured one conviction involving an attempted Harlem deed theft and has separately charged another man accused of trying to steal the home of an elderly Brooklyn woman living with dementia.

As officials devote more resources to combating deed theft, experts say awareness remains one of the strongest defenses. Understanding how these scams work—and knowing the warning signs—can help homeowners protect one of their most valuable assets before fraud occurs.