Blog - The American Association of Notaries - Deed Fraud: A System Failure, Not a Notary Failure

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Read this month’s blog published by The American Association of Notaries

Deed Fraud: A System Failure, Not a Notary Failure

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Imagine discovering that your home has been sold, transferred, or used as collateral without your knowledge. For a growing number of property owners, that is not just a fear, but a reality. Deed fraud is one of the most damaging forms of property crime because it can quietly take away a person’s most valuable asset and leave the rightful owner facing a long and costly legal battle to reclaim it. When deed fraud happens, the blame is often placed on notaries. But that response overlooks the real problem.

When you sell a car, you are generally required to present the official certificate of title issued in your name to prove that you own it and have the right to transfer it. But when it comes to a home, a recording office often does not require that same kind of direct proof before accepting a deed for recording. In many cases, all that is needed is a document that appears to satisfy the filing rules. A home is often far more valuable than a vehicle, yet the system may allow ownership records to be changed with less meaningful verification.

Recording offices are designed for speed and efficiency. Their job is to process a high volume of documents quickly so property transactions can move forward and public records can be maintained. But a system built for fast filing rather than meaningful verification creates an opening for fraud. It allows criminals to exploit a process that focuses more on whether a document looks complete and compliant than on whether the transaction is genuine.

Recording offices also often do not have the time or resources to verify whether the notary seal or stamp on a deed is legitimate. In today’s digital world, a fake notary seal can be created with common design software, and notary stamps may also be fraudulently obtained from vendors that fail to require proof of a valid notary commission. As a result, a forged deed may pass through the recording process without anyone confirming that the notarization itself is authentic.

Instead of addressing weaknesses in the recording system, lawmakers focus on enacting stricter notary regulations, thereby misunderstanding a notary’s limited role. The notary’s duties are ministerial in nature, which means a notary is not required to determine the legality of a document or the accuracy of its contents. Stricter notary regulations do not fix the problem; instead, they may discourage qualified individuals from serving.

Notaries should continue to do their part to help deter fraud, maintain the integrity of the notarial process, and preserve public trust. That includes requiring every signer to personally appear at the time of notarization, verifying each signer’s identity, properly recording notarial acts even when not required to do so by state law, safeguarding their notary seals, and promptly reporting any seal that is lost or stolen. Notaries should also consider carrying errors and omissions (E&O) insurance to help cover legal defense costs and other covered expenses resulting from unintentional mistakes or invalid claims.

Legal disclaimer: The American Association of Notaries is committed to providing accurate and up-to-date information in our newsletters. However, it is important to note that the information provided in our newsletters is for general informational purposes only and should not be relied upon as legal advice. We do not claim to be attorneys and we do not guarantee the accuracy, completeness, or reliability of the information provided. You should always seek the advice of a licensed attorney for any legal matters. In no event shall the American Association of Notaries, its employees, or contractors be liable to you for any claims, penalties, losses, damages, or expenses, howsoever arising, including, and without limitation, direct or indirect loss, or consequential loss, out of or in connection with the use of the information contained in the American Association of Notaries newsletters. It is your responsibility to know the appropriate notary laws governing your state. Notaries are advised to seek the advice of their state’s notary authorities or attorneys if they have legal questions. If a section of this disclaimer is determined by any court or other competent authority to be unlawful and/or unenforceable, the other sections of this disclaimer continue in effect.

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Nothing new in this blog. Guess it does no harm to reiterate for newbie consumption and as a reminder for experienced notaries.

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Remote online notarization (RON) is honestly one of the biggest upgrades to the notary world when it comes to preventing fraud. It’s not just about convenience—it actually makes the whole process a lot more secure than the old way of doing things.

Think about traditional notarizations for a second. Someone walks in, shows an ID, and as long as it looks legit, the notarization moves forward. But with RON, there are multiple layers of verification. The signer usually has to go through credential analysis (where their ID is scanned and checked) and answer security questions based on their personal history. That alone makes it much harder for someone to fake their identity.

Then you have the video recording. Every session is recorded from start to finish. So if anything ever comes into question later, there’s actual footage to go back and review. That’s a huge difference from in-person notarizations where it basically comes down to your word versus theirs.

Another big thing is document security. Once a document is notarized online, it’s locked in. If someone tries to change anything afterward, the system flags it immediately. There’s no “quietly editing a document” after the fact.

You also get a full audit trail—timestamps, IP addresses, verification steps—all tracked automatically. So everything that happened during that notarization is documented. That kind of transparency just didn’t exist before.

At the end of the day, RON takes away a lot of the gray areas where fraud used to happen. It forces proper steps, records everything, and adds layers of protection that make it a lot harder for bad actors to slip through. It’s not just the future of notarization—it’s a smarter, safer way of doing it.

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In California it’s a different story. Califnuttia is one of the fraud capitals of the known world (and I am a retired bank fraud investigator) and the Secretary of State has elected to defer RON until 2030. Here’s their position:

SB 696, passed in 2023, authorizes Remote Online Notarization (RON) in California, with full implementation by the Secretary of State (SOS) expected by January 1, 2030, or sooner upon completion of necessary technology upgrades. While CA notaries cannot currently perform RON, the law allows Californians to use out-of-state RON services.

Key Details on California RON (SB 696):

  • Implementation Timeline: The law is operative in stages, with full, final implementation and system activation by the CA Secretary of State anticipated by January 1, 2030.

  • SOS Requirements: The Secretary of State is responsible for setting standards, approving technology platforms, and managing the registration of notaries who wish to perform RON.

  • Recording & Safety: Notaries must store audio-video recordings on encrypted devices.

  • Out-of-State Usage: Currently, California recognizes notarizations performed by notaries in other states that permit RON, allowing CA residents to use such services for, for example, real estate transactions.

  • Current Status: As of early 2026, California-commissioned notaries must still perform traditional, in-person notarizations.

The California Secretary of State is in charge of developing the secure infrastructure to allow California notaries to verify identities online and seal documents electronically.

When I called the SoS’s office to inquire about RON, the short answer I got was that there’s simply too much fraud and not enough safeguards to allow RON in California. I guess I’ll go with that for now. By 2030, I’ll have retired for the fourth time, anyway.

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I understand the concern about fraud, but I see it a bit differently when comparing traditional notaries and Remote Online Notarization (RON).

Traditional notarizations rely heavily on in-person identification, which can be effective, but they are also limited to visual inspection of IDs and the notary’s judgment in the moment. In contrast, RON transactions typically include multiple layers of security—such as identity verification tools, credential analysis, knowledge-based authentication, and recorded audio-video sessions. These create a digital audit trail that can make it easier to detect and investigate fraud after the fact.

And since we’re talking about fraud, it’s worth noting that California itself experienced significant fraud issues during COVID—not because of RON, but due to gaps in other systems. For example, the state paid out massive amounts of fraudulent unemployment claims, including many filed in the names of prison inmates. Estimates have suggested that up to $1 billion in claims were tied to inmates alone, with broader fraud totals reaching into the billions.

That situation highlights an important point: fraud tends to occur where safeguards are weak or inconsistently applied. RON, when properly regulated, actually adds layers of verification and a permanent record that traditional notarizations simply don’t provide.

No system is completely fraud-proof, but rather than lacking safeguards, RON offers a different—and in many ways stronger—set of protections when implemented correctly.

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I did a signing with a guy, the corner of his ID was frayed and I said “you realize this damaged ID is not accepted for ID” and he said “WHAT?”

So he went and got his passport. I didn’t think it was a fake ID but rules is rules.

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Going to add some of my 2 cents worth about electronic devices. No matter how careful the verification is, the fact of the matter is that devices connecting to the internet need power cycled regularly, even your modem at home and whatever type of RON equipment you are using. Why? Because the Internet of Things (IOT) relies on a dynamic pool of IP addresses. If you are using RON, but are pretty much in a static location, your randomly assigned IP address may not get updated as frequently providing a possible way to hack information. Even though it seems to offer multiple layers of verification, it is still only as good as the actual connection it is on. Power cycling, which seems like a no brainer, allows the device connection to break with the network it’s on, and re-establishes once it powers back on with a refreshed IP address. If you have ever contacted your carrier to troubleshoot your phone, one of the first questions tech support usually asks is when was the last time you power cycled? Why? Because old connection information can degrade over time jumbling data transfer which could make it vulnerable. In rural areas, there may be only a few towers available which limits the dynamic pool even further. There may be IP addresses that are being shared to a certain extent. In the case of California allowing out of state RON, one question every user should be taught to ask is when was the last time the notary power cycled their device they plan on using for the RON transaction. It’s really very simple. Many devices offer a setting to automatically power cycle the device and or disconnect/reconnect to internet. You certainly don’t want to be in the middle of a RON transaction and have things go awry.

Long time ago in a galaxy far, far away, there were hard handoffs on cellular networks, and users would hear a “click” when they occurred. Now, cellular service and wi-fi are much more seamless. The principle, though, is the same. You don’t hear the click; but with companies like Frontier, Spectrum, Comcast, etc., offering the functionality of access to their wifi no matter where you are, the power cycling of your electronics are critical.

And, your modem at home…well, same thing…power cycle it regularly. Find the time it’s least impactful on your life and that of your family. It only takes a few minutes to reboot. If your security system counts on a reliable internet connection to protect you, it’s worth it.

Make sure you keep your operating system and anti-virus type software up to date as well. Technology overtakes itself now less than every 2 years. What was state of the art in 2024 won’t be in 2026. You don’t have to be a tech genius, just be vigilant.

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Yes, a secure connection is just as important as maintaining multiple layers of security procedures when working as a remote online notary. For example, my Comcast modem includes built-in security features that detect and block potentially compromised or unsafe sites. In addition, I use a VPN across all of my devices—computers, tablets, and phone—to add another layer of protection.

I may not claim to be the smartest person in the room, but through hands-on experience both in the field and in back-office operations—along with working for Comcast, Charter Communications (Spectrum), and RCN—I’ve developed a solid understanding of technology and its vulnerabilities.

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@silencedogood056 I would like to express my sincere gratitude for the invaluable insights, which I’m referring to as “golden nuggets,” that were shared in this discussion. It’s a fundamental principle that, regardless of the technology or tool being utilized, especially when it comes to Remote Online Notarization (RON) and the security systems that underpin them, a proactive and consistent maintenance process is not just recommended but absolutely essential to ensure optimal performance, reliability, and, most importantly, to mitigate potential vulnerabilities and maintain the integrity of the transactions.

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@antonio – You brought up fraud in California. I found the following April 2025 article on fraud which gives a comparison: The 10 States Where Criminals Are Most Likely to Get Away with Fraud - OnFocus

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Very interesting read, Yoli.

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Florida ranks first and California second—but sure, let’s pretend it’s because Florida criminals are just more ‘advanced,’ not because there’s higher volume and better reporting.

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Thanks, Antonio! As our business evolves, security will be paramount, and whatever tech experience we can provide will benefit all of us.

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Thanks for the comment! Our field is going to evolve, and we have to be diligent and ready to encompass it as well as embrace it. Whatever our level of tech experience, the “golden nuggets” we can provide become invaluable to everyone.

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you might want to read this article: Notaries are more important than ever amid the rise of Artificial Intelligence. | NNA

It explains how a fraudster used video conferencing and AI deepfake video technology to scam $25 million from a company. RON makes fraud easier.

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Earlier this year, it was reported that a finance worker at a multinational corporation in Hong Kong was scammed into sending a $25 million wire transfer to criminals.
What does that have to do with RON?

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should’ve kept reading…“CFO and employees were not real, but digital imposters created by the criminals using “Deepfake AI” technology. The worker saw their faces, heard their voices, and watched them move and interact with their environments and each other”.

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Let’s break this down into the specific technical gaps in your argument:

  • Platform Context: The provided text only references a standard video conference call. It makes no mention of Remote Online Notarization (RON) platforms.
  • Identity Verification: Did the human employees manually cross-reference the credentials against the established knowledge record?
  • Biometric Authentication: Was a biometric analysis performed to verify the identity of the participants?
  • On-Demand Security: Every modern RON platform allows users to trigger a manual “deepfake analysis” on demand, even if the automated system fails to generate an initial flag.
  • Outdated Data: Your argument relies on a document from 2023. It fails to account for the rapid advancements in today’s security technology.
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@matt After carefully reviewing the article, I am still grappling with a specific question. Although the article describes a situation involving a videoconference where a financial worker was instructed to execute a significant money transfer, specifically mentioning, “The worker was directed to make the transfer during a videoconference with the company’s Chief Financial Officer and several other members of the staff,” it appears to me that this particular scenario exhibits substantial differences when compared to the established procedures typically utilized within Remote Online Notarization (RON) practices. In standard RON procedures, transactions are conducted on secure, specialized platforms, and signers are consistently required to successfully complete and pass through three distinct and comprehensive security protocols. Given these distinctions, could you kindly offer some clarification to help me understand if I might be misinterpreting the article’s implications, specifically concerning its potential effects on the security protocols that are in place for RON? It’s important to remember that fraud is a persistent and evolving criminal activity that has been a concern for many years. Even in situations where transactions are conducted in person, the possibility of fraudulent actions still exists. As notaries, we, including myself, place our trust in individuals being truthful and presenting us with authentic and legitimate identification documents during our loan signing assignments. Let face it, there’s no 100% foolproof way as of date that prevents fraud from occurring.

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I think that some notaries have a higher opinion of RON than others. Mine is that RON will make fraud easier due to, as already pointed out, rapidly evolving technologies. The bad guys are just as technologically savvy as the good guys.