Deeds Offices Hit by Cyberattacks and Ransomware

• Jackson County, Missouri suffered a ransomware attack in spring 2024, resulting in the loss of deed and lien documents recorded between March 29 and April 1. Title insurance agents were unable to verify mortgages or liens, stalling real estate closings.
• In North Carolina, Cumberland and Hoke Counties had their Register of Deeds systems disabled after a ransomware attack on a third‑party vendor. Although no data was permanently compromised, online deed searches and plat lookups became inaccessible for days. Lawyers and realtors reverted to in‑office or paper records to keep transactions moving.
• A broader cyber‑attack tied to Cott Systems—a digital service provider used by many counties—did severe damage in December 2022. At least 21 states, including Onondaga (NY), Florence (SC), Vermont towns, North Carolina, Iowa counties, and multiple Ohio counties, saw deed‑recording halted for days or weeks. Some counties lost access to decades of electronic records.

Impact on the Title Industry & Real Estate Markets

Major Effects:

• Title searches stalled or delayed
  Without access to online records, title companies couldn’t verify whether taxes, liens, or prior deeds existed. Many closings were delayed; some sellers had to sign affidavits about unknown encumbrances.
• Manual backups strain resources
  Offices resorted to paper-based record searches or in-person access, slowing turnaround times and increasing error risk. Some smaller counties managed with manual entry; larger ones became gridlocked.
• Escrow and lender complications
  Particularly where vendor outages occurred (e.g. Fidelity under ransomware), funded transactions could not record, causing buyers to lose rate locks, lenders to back out, and title underwriters to face financial disruption. As one title‑industry insider on Reddit described it, “scary… lenders have sent money… funded… but when they went to record they haven’t been able to.”
• Increased potential for deed fraud

Missing or inaccessible records create windows of opportunity for impersonation scams. Deed fraud incidents skyrocketed in places like Michigan (e.g. Zina Thomas stealing 30+ homes via forged quitclaim deeds) and high-value properties like Graceland. AI tools make forging documents more convincing than ever.

Emerging Data & Trends

• A 2025 REALTOR® survey revealed 63% of association leaders reported deed or title fraud activity in their markets over the past year—especially pronounced in the Northeast (92%).
• A 2024 American Land Title Association (ALTA) brief estimated over $10 billion lost in imposter scam‑related fraud in 2023 alone, much of it involving forged property documents.

Broader Implications for Property Owners, Title Companies, and Regulators

For Homeowners & Sellers:

• Legal and financial exposure: If deed records cannot be verified, homeowners may find lien claims or fraudulent sales unknown until much later.
• Rising reliance on enhanced title insurance: Coverage such as “Homeowner’s Policy of Title Insurance” can protect against post-purchase fraud, but standard policies do not always offer this.
• Increased need for proactive monitoring: Many counties now offer free owner-alert services that notify residents when records are filed in their name.

For Title Industry & Closing Professionals:

• Operational delays and higher costs: Manual record retrieval, risk of missing documents, and increased legal reviews slow closing cycles and raise operational risk.
• Vendor vetting and cybersecurity hygiene: Title insurers, vendors, and county offices must invest in stronger identity verification, multi-factor authentication, and cyber-hardened infrastructure. ALTA and associations like PRIA and NNA have issued recommended practices for preventing deed fraud.

For Counties & Public Sector:

• Need for resilience and backup systems: Relying on single vendor platforms without offline redundancy poses serious risk to essential public record access.
• Public awareness and reporting frameworks: Educating residents and enabling them to report suspicious filings is essential, especially for elderly or out-of-state owners.

Case Spotlight: Jackson County, MO—Lessons in Disruption

• Documents from March 29–April 1, 2024 were lost. Underwriters could not confirm clear title, putting buyers, sellers, and lenders at risk. Title agents stayed in constant communication with county officials.
• Even as recovery continued, open questions remained: Were any liens or transfers recorded? Could undisclosed mortgages exist? That uncertainty is what underpins the critical role of title companies—and the risk of fraud.

Recommendations for Industry Stakeholders

1. Counties: Build robust backup systems and cross-check platforms; offer owner-alert subscriptions.
2. Title companies: Ensure enhanced fraud detection workflows; consider escrow contingency planning when vendor outages occur.
3. Homeowners: Enroll in property watch services; review title insurance policy options that include post‑purchase fraud coverage.
4. Policy & trade associations: Standardize identity verification at notaries and county filings; push for state-level registries and quick remediation processes.

In Summary

Register of Deeds offices nationwide have become soft targets for ransomware and cyberattacks—many via vulnerabilities in third-party recording platforms like Cott Systems. These disruptions not only delay closings and frustrate real estate professionals, but they also, crucially, expose property rights to impersonation fraud. As deed fraud climbs—with AI-enabled forgery aiding fraudsters—the title industry and property owners must both strengthen defensive protocols and empower victims through better insurance, alert systems, and legal frameworks.

Please note: Any opinions discussed in this article belong solely to the author, Marissa Berends, and do not necessarily reflect the views of Capitol Lien.

About the Author
Marissa Berends is a Certified Abstractor and Industry Relations Coordinator at Capitol Lien, a nationwide due diligence and risk mitigation services provider. Since joining the company in September 2021, she has earned abstractor certifications in Minnesota, Nebraska, and North Dakota. She is pursuing her Wisconsin Title Examiner certification, which is expected to be completed in Fall 2025.

Marissa is involved with the following groups: Wisconsin Land Title Association’s (WLTA) Convention Committee & Young Title Professionals; Nebraska Land Title Association’s (NLTA) Convention Committee; Property Record Industry Association (PRIA) National Education Committee; Illinois Land Title Association’s (ILTA) Inclusion, Diversity, Equity & Acceptance (IDEA) Committee; and the National Association of Land Title Examiners and Abstractors (NALTEA).

About Capitol Lien

Capitol Lien empowers real estate and title professionals with trusted public record research and due diligence services nationwide. With 35 years of experience, Capitol Lien specializes in fast, accurate property and title searches, lien reports, and document retrieval that help title agents, underwriters, and legal teams operate their businesses with confidence. The Capitol Lien team takes the hassle out of title research with local experts and innovative tools that make it easier to mitigate risk, stay on schedule, and keep your closings moving smoothly.

Learn more at capitollien.com. Ready to simplify your title research? Send your next order to Capitol Lien and experience the difference trusted diligence makes. Stay in touch with Capitol Lien on LinkedIn for industry updates and information. Reach out! contact@capitollien.com or 800-845-4077.

Sources:

CityView NC: County still working to address ransomware attack on Register of Deeds server

Deeds.com: Hackers Struck in December. Deed Recorders Are Still Reeling

National Cyper Security: Cumberland County and Hoke County Registers of Deeds Face Ransomware

KCTV5: Ransomware attack leaves Jackson County with missing property records

ALTA: ALTA Partners With Other Groups Highlighting Deed Fraud Prevention; Several County Recording Offices Impacted by Possible Cyberattack

Ridge Abstract Corp: County Computer Systems Have Been Hacked

MyChesCo: Pennsylvania Realtors Sound Alarm on Rising Title and Deed Fraud, Urge Homeowner Vigilance

The Wall Street Journal: Scammers Tried to Sell Graceland. How to Prevent Your Home From Being Next.

California Land Title Association: Trade Groups Combating Deed Fraud

New York Post: Deed fraud is on the rise – here’s how to protect your home

Business Insider: Scammers are stealing homes from under their owners’ noses. AI is making it scarily easy.