As real estate fraud schemes become increasingly sophisticated, title insurance companies are turning to technology to strengthen security throughout the closing process. Commonwealth Land Title Insurance Company’s Phoenix National Commercial Services division is now using CLEAR identity verification technology as an additional step in verifying parties involved in real estate transactions.
The technology is familiar to many travelers through CLEAR’s airport identity verification service, which uses biometrics to confirm a traveler’s identity at participating airports. Commonwealth is applying similar identity verification technology to a different setting: real estate closings.
CLEAR compares a government-issued ID with a live selfie to help confirm that the individual participating in a transaction is who they claim to be. For Commonwealth’s Phoenix team, the technology adds another layer of verification to help identify potential seller impersonation before a transaction proceeds to closing.
The technology addresses a growing challenge for the title insurance industry. Fraudsters can impersonate property owners to facilitate fraudulent real estate transactions, creating significant financial and legal risks for the professionals handling the transaction.
For commercial real estate, where properties can represent millions of dollars in value, additional identity verification can be an important component of risk management. Commonwealth’s use of CLEAR illuminates how technology familiar to consumers in one industry can be adapted to address a different business challenge.
Rather than replacing the expertise of title and escrow professionals, identity verification technology adds another tool to established closing procedures. As increasingly sophisticated fraud tactics continue to reshape the industry, title companies are incorporating new technology to strengthen verification processes and help preserve the integrity of real estate transactions.
Tonya Lively is vice president of national commercial operations and escrow operations manager at Commonwealth Land Title Insurance Company’s Phoenix National Commercial Services.
