America’s disparate land registry agencies are fueling fraud — and the costs are mounting

The high cost of non-compliance

The current system relies on a decentralized network of records where data rates vary widely from region to region.

This division is not just an administrative headache; carries a huge financial burden. Because many localized systems are not integrated or standardized, identifying risks such as counterfeiting or vendor impersonation becomes more difficult.

Recent data shows the severity of this issue.

According to the analysis of 2025 it is Milliman as well as American Land Title Association (ALTA)fraud and fraudulent claims account for a large portion of the total dollars spent by title insurers on claims and loss costs.

The report notes that the average cost of such a claim on a purchase is about $143,000 — while refinance sales jump to $207,000.

Kammerdeiner noted that success in overcoming these obstacles must be measured.

“If we use this technology, and in the future, we can look back and see that we can close real estate transactions at a lower cost and more efficiently. [than today]that would be a measure of success,” he said. “Also, if we can say in the future that AI and blockchain are effective in reducing the risk of impersonation, that would also be a metric of success.”

The rise of AI-powered simulations

While the industry struggles with legacy paper systems, bad actors are quickly adopting advanced tools.

Tory Ricalis, CEO and founder of title, warned that the technology gap between criminals and regulators is widening.

“Criminals are often ahead of the curve with the use of technology rather than where there is a certain industry,” he said. “We’ve seen different cases of people using AI, their voice, sorting documents, passports, driver’s licenses, signatures, you name it. All of that is real, and it’s happening every day, and we’re going to see more of it.”

Ori Ohayon, founder and chief economist at Titl, added that the reliance on paper documents makes these crimes difficult to track.

“According to what we have heard, most of the people who deal with these issues are underwriters,” he said. “But also from what we’ve heard, these are daily incidents of attempted fraud, identity theft, and wire fraud.

Titl recently raised $2.5 million in seed funding to expand its AI- and blockchain-powered title verification platform beyond Florida.

Although paper-only registration is now in the minority, it still exists in many pockets – requiring a physical visit to inspect the title.

Responsibility, the path to national standards

As the industry looks to transition to automated or centralized registration, an important question arises; who’s to blame if the technology falters?

Critics worry that a shift away from human-led recording could create a debt vacuum. Kammerdeiner suggests that the shift will see regulators move towards technology systems regulators.

“This is something we are considering at CATIC as we implement new systems and workflows,” he said. “At the end of the day, AI and blockchain systems should not replace human judgment. That’s why I envision a future where people work together with AI and blockchain technology to improve the work we do, make it cheaper, faster and more secure.”

Achieving a unified system is a difficult task, as thousands of states have spent decades building their own separate infrastructure.

Kammerdeiner believes that the way forward is in private-public cooperation – rather than a high-level government mandate.

Organizations like Real Estate Industry Standards Association and ALTA is already working on the digital settlement ecosystem, he adds.

Ohayon says blockchain can provide the necessary infrastructure for this integration without interfering with the basic authority of municipal law.

“The governance and the process will remain exactly the same,” he said. “Municipalities are responsible for filling out all their documents. They upload everything the way they would. The benefit of adding blockchain is that everything is now centralized, and there is a uniform level of reporting.

“One of the biggest reasons there’s a chance for fraud is because everything is inconsistent and it’s part of every county, township and so on. It’s broken. The strongest way to consolidate it is to put everything in one place using the same standard.”

Closing the beast gap

A major source of inefficiency is the lack of communication between different government offices – property inspectors, tax collectors and district clerks who often work in silos without automatic information sharing.

Rikalis noted that the consolidated registry will eliminate the need for subject citations to refer to multiple databases.

“Creating a unified digital land registry will help reduce any issues related to fraud and increase efficiency across the board,” he said. “When I go to the county clerk’s office and file a deed or change a deed, you’re not actually notified as a seller or homeowner. You’re not notified until weeks, months later or when you go to sell your home.”

According to Ohayon, the combination of AI and blockchain provides a “clean and secure” solution.

“One of the great things about AI is its ability to clean and analyze data,” he says. “Blockchain protects it. So, if we had one central place where documents are uploaded, AI could analyze it, blockchain can protect it and whenever there is a change, the parties will be notified. Fraud is prevented, basically, at the time you try. It creates more opportunities and kills more risks.”

Testing over assumptions

While some argue that blockchain is overhyped or brings new privacy risks, experts argue that the industry can’t afford potential fraud solutions.

Kammerdeiner emphasized the need for empirical testing over speculation.

“Let’s test technology, collect performance data and weigh the risks versus rewards of adopting emerging technologies,” he said. “We have the brains as an industry to do this analysis and lead the way. While some new risks may emerge, we can find greater protection against existing risks that, if left unchecked, pose serious threats to the title insurance business.”

Rikalis added that the aim is not to end the activities at the land registry and recording area, but to improve them.

“AI cannot make executive or managerial decisions,” he says. “There still has to be an experienced human when reviewing a mortgage document, a deed, a deed, whatever it is. AI is just helping. It can scan, analyze and relay that information to the necessary teams to go, ‘Yeah, it looks good. Here’s my stamp of approval.'”