Preventing Fraud and Forgery: Just Because They Sign It, Doesn’t Mean It’s Real

TL;DR: Forged signatures, fake IDs, and fraudulent deeds are rising threats in Eastern Kentucky real estate, especially in rural Johnson and Magoffin Counties where handshake deals once ruled. Title companies with local knowledge—who know the families, spot the red flags, and verify identities properly—are your best defense against losing property to fraud. Eastern KY Title combines attorney oversight, notary expertise, and community connections to catch forgeries before they cost you everything.

Your grandmother’s 40 acres in Magoffin County just sold for $85,000. There’s only one problem: Grandma didn’t sell it. She’s been in a nursing home for six months and doesn’t even remember owning the land.

But someone signed her name. Someone presented an ID. Someone walked away with a cashier’s check. And if the title company didn’t catch the fraud before recording that deed, your family just lost four decades of property ownership to a forger with good handwriting and a fake power of attorney.

This isn’t a hypothetical scenario from some big-city crime drama. This is happening right now in Johnson County, Magoffin County, and rural communities across Eastern Kentucky. Fraud and forgery in real estate transactions have exploded over the past five years, targeting exactly the kind of properties our region is full of: rural land, older homes, properties held in family names for generations.

The old days of handshake deals and knowing everyone in the community created a culture of trust that served us well for decades. But that same trust makes us vulnerable to modern criminals who exploit our good nature and our assumption that people are who they say they are.

After 30 years in real estate law and thousands of closings, I can tell you this with absolute certainty: a signature on a deed means nothing if the person signing isn’t who they claim to be. And in today’s world, verifying identity requires more than a friendly conversation and a glance at a driver’s license.

What Is Real Estate Fraud? (And Why Is It Targeting Rural Kentucky?)

Real estate fraud is any scheme that uses false documents, stolen identities, or deceptive practices to illegally transfer property ownership or steal money in a real estate transaction. It ranges from forged signatures on deeds to elaborate impersonation schemes involving fake IDs, fraudulent notarizations, and counterfeit documents.

Here’s why Eastern Kentucky—particularly rural counties like Johnson and Magoffin—has become a prime target:

1. Vacant or absentee-owned land

Many families own rural property they don’t live on: hunting land, inherited family farms, vacant lots purchased years ago as investments. These properties are easy targets because the real owners might not notice a fraudulent sale for months.

2. Properties with unclear ownership histories

In areas where handshake deals were common and family transfers weren’t always formally recorded, ownership can be murky. Fraudsters exploit this confusion by claiming ownership with manufactured documentation.

3. Properties held in elderly owners’ names

When an older property owner is in declining health, in a nursing home, or mentally incapacitated, criminals see opportunity. They forge signatures, fabricate powers of attorney, or simply impersonate the owner.

4. High-value vacant land

Rural Kentucky land has become increasingly valuable, especially properties with timber, hunting potential, or development possibilities. A 50-acre tract in Johnson County that sold for $30,000 in 2000 might sell for $150,000 today—making it worth the risk for sophisticated fraudsters.

5. Limited title scrutiny in cash deals

When a buyer pays cash (no mortgage involved), there’s often less scrutiny of the seller’s identity and documentation. Fraudsters specifically target all-cash transactions to avoid the additional verification that lenders require.

6. Out-of-state title companies with no local knowledge

Large national title companies processing Johnson County transactions from offices in Nashville or Columbus have no way to know that “Roger Johnson” selling that Paintsville property doesn’t sound right, doesn’t look right, and isn’t the Roger Johnson who actually owns the land.

Local knowledge isn’t just helpful—it’s essential. And when it’s missing, fraud thrives.

Three Real Fraud Scenarios That Nearly Cost Families Everything

Let me walk you through three situations we’ve encountered or investigated in the past few years. These aren’t theoretical examples—these are real attempts to steal real property from real families in our region.

The Ex-Spouse Revenge Plot

A couple in Johnson County divorced after 15 years of marriage. The settlement was messy, involved significant acrimony, and left the ex-husband bitter about the property division. The ex-wife got the marital home—a nice place on several acres outside Paintsville.

Two years later, she discovered her home had been sold six months earlier. Her ex-husband had forged her signature on a Quitclaim Deed, transferred the property to himself, then immediately sold it to an out-of-state buyer for cash. The buyer, who purchased the property as an investment, had no idea they were buying stolen property.

The ex-husband used his intimate knowledge of his ex-wife’s signature, had access to personal information (Social Security number, birth date), and created documents that looked legitimate on their face. The notary—a mobile notary from out of town who didn’t know either party—accepted the ex-husband’s claim that he had “permission” to sign for his ex-wife.

The forgery was only discovered when the ex-wife tried to refinance and learned she no longer owned her home.

The resulting legal battle took 18 months, cost both the ex-wife and the innocent buyer tens of thousands in attorney fees, and eventually resulted in criminal charges. The property was returned to the ex-wife, but the emotional and financial damage was devastating for everyone involved except the forger.

Here’s the kicker: a local title company with attorney oversight would have immediately questioned why an ex-husband was signing for his ex-wife on property awarded to her in a divorce decree. We would have demanded direct contact with the actual owner. We would have verified the signature with proper identification procedures.

The title company that processed the fraudulent transaction was based three states away and never asked a single follow-up question.

“Grandma’s Land” and the Fake Power of Attorney

An elderly woman in Magoffin County owned 60 acres that had been in her family since the 1940s. She’d raised her children there, buried her husband in the family cemetery on the back portion, and planned to leave the property to her grandchildren.

At age 84, she entered a nursing home with advancing dementia. Six months later, her property sold for $78,000 to a buyer from out of state. The transaction was handled by her grandson—or at least, that’s what the documents claimed.

The “grandson” presented a power of attorney supposedly giving him authority to sell the property on his grandmother’s behalf. The document looked official, had what appeared to be a notary seal, and included the grandmother’s signature.

The problem? The power of attorney was completely fabricated. The grandson had no legal authority. His grandmother had never signed anything. And the signature wasn’t even close to hers.

The fraud was discovered when the real grandson—who actually was close to his grandmother and visited her regularly—learned about the sale from a neighbor who saw activity on the property. He contacted the Kentucky State Police, who launched an investigation.

It turned out the fraudster was a distant relative who’d learned about the elderly woman’s condition and saw an opportunity. He’d created the fake power of attorney using templates from the internet, forged the grandmother’s signature, and hired a notary who didn’t properly verify identity or understand Kentucky notary law.

As someone who literally wrote the book on Kentucky notary law and practice, this one makes my blood boil. A properly trained notary following Kentucky requirements would have demanded to see the grandmother in person, verified her identity, confirmed she understood what she was signing, and documented the entire process properly. None of that happened.

The property sale was voided, but not before causing enormous stress to an elderly woman, devastating her legitimate family members, and costing the innocent buyer (who’d purchased in good faith) significant time and money.

The Vacant Lot Impersonation Scheme

This one’s increasingly common and particularly brazen.

A vacant lot in Johnson County—five acres of undeveloped land with good road access—was listed for sale by someone claiming to be the owner. The “seller” had identification, knew details about the property, and seemed legitimate to the out-of-state buyer who was looking for investment property in Kentucky.

The transaction moved forward quickly. The seller was eager to close, offered a below-market price, and insisted on an all-cash deal with minimal contingencies. The buyer, excited about getting a good deal, didn’t ask too many questions.

The problem? The “seller” wasn’t the seller. He was an impersonator using a fake ID, forged documents, and enough knowledge about the property (gleaned from public records) to seem credible.

The real property owner—who lived two counties away and checked on the land occasionally—discovered the fraud only when he received a property tax bill addressed to someone else. By that point, the deed had been recorded, the fraudster had disappeared with $35,000 in cash, and an innocent buyer owned land that wasn’t actually theirs to buy.

This type of fraud is growing because:

• Public records make it easy to identify vacant, absentee-owned properties
• Online document templates make it easy to create convincing forgeries
• Fake IDs are shockingly easy to obtain
• Mobile notaries from outside the community don’t know who anyone is
• Title companies without local presence can’t spot the red flags

As Lindon puts it, “When you don’t know the community, everyone looks legitimate. But when you’ve lived here your whole life, you know when something doesn’t smell right.”

Why Local Knowledge Is Your Best Fraud Defense

Here’s what separates a local title company from a national processing mill: we know when something’s off.

In Johnson and Magoffin Counties, families have lived on the same land for generations. Names repeat. Properties pass through family lines. And when someone we’ve never heard of suddenly appears claiming to sell property that’s been in the Johnson family since 1962, we ask questions.

We know the local families. We know the property histories. We know which names should be attached to which properties. And when we see transactions that don’t match that institutional knowledge, we investigate before we process.

This isn’t about being nosy or invasive—it’s about protecting property rights in communities where trust and reputation matter.

Consider these real advantages of local title work:

We recognize when family relationships don’t make sense.

If someone claims to be handling a transaction for “their uncle” but we know that family and that relationship doesn’t exist, we stop and verify.

We spot inconsistencies in property histories.

When a property that’s been owned by the same family for 40 years suddenly has a new owner who purchased it through a quit-claim deed with no mortgage, that’s a red flag worth investigating.

We have relationships with local notaries who actually know Kentucky law.

We work with notaries we trust, who understand proper identification procedures, who won’t notarize a signature without verifying identity, and who document everything properly.

We can make phone calls to verify information.

If we’re uncertain about a transaction, we can call the supposed seller directly, contact family members we know, or reach out to other community resources to confirm legitimacy.

We involve attorneys from day one.

Every transaction we handle has attorney oversight. When something seems questionable, we have legal expertise immediately available to evaluate the situation and protect everyone involved.

We’re not in a hurry.

We don’t process 500 closings a month across ten states. We handle transactions one at a time, with the care and attention they deserve. If something needs additional verification, we take the time to do it right.

The fraudulent transactions I’ve described? Every single one would have been stopped by a local title company with proper procedures and community knowledge. Every single innocent buyer would have been protected. Every single property owner would have kept their land.

That’s not arrogance—that’s just the reality of what local expertise provides.

The Critical Role of Notaries in Preventing Forgery

As the founder of Kentucky Notaries and author of “Kentucky Notary Law & Practice: A Modern Guide,” this is where my expertise really matters.

Notaries are the first line of defense against forged documents and fraudulent signatures. A properly trained notary following Kentucky law can stop most fraud attempts before they progress.

Here’s what a notary is supposed to do (and what many mobile notaries from outside our communities fail to do):

1. Verify identity using approved identification.

Kentucky notaries must verify identity using current government-issued photo ID: driver’s license, passport, military ID, or other approved forms. The notary must actually look at the ID, compare the photo to the person, check expiration dates, and watch for signs of tampering or forgery.

A mobile notary who glances at an ID while juggling three other appointments isn’t actually verifying anything.

2. Confirm the signer’s willingness and awareness.

The notary must ensure the person is signing voluntarily, understands what they’re signing, and isn’t under duress or incapacity. For elderly signers, this means having a real conversation to assess mental capacity.

A notary who shows up, stamps documents, and leaves hasn’t fulfilled this requirement.

3. Witness the actual signing.

The person must sign the document in the notary’s presence. The notary cannot notarize a document that was already signed before they arrived. This seems obvious, but it’s violated constantly.

4. Maintain a proper notary journal.

Kentucky notaries should keep detailed records of every notarization: date, type of document, method of identification, and any unusual circumstances. This journal becomes critical evidence if fraud is later discovered.

5. Recognize when to refuse.

If something seems wrong—the signer seems confused, the ID doesn’t match, the family relationships don’t make sense—the notary must refuse to notarize. This is a professional responsibility, not optional.

The fake power of attorney scenario I described earlier? That fraud succeeded because the notary either:

• Didn’t actually verify the grandmother’s identity
• Notarized a document without the grandmother present
• Failed to assess the grandmother’s capacity to understand what she was signing
• Didn’t recognize the obvious red flags

Any one of those failures could have been prevented by proper notary practice.

Red Flags That Scream “Fraud” (What We Look For)

Here are the warning signs that make us stop a transaction and investigate further:

Seller Red Flags:

• Seller is unusually eager to close quickly without normal contingencies
• Seller insists on all-cash transactions and refuses financing
• Seller provides minimal documentation and resists requests for additional information
• Seller’s identification seems questionable or doesn’t match other documentation
• Seller’s signature varies significantly across different documents
• Seller claims to represent an elderly, incapacitated, or deceased owner
• Seller has no obvious connection to the property or local community
• Seller uses a P.O. box or out-of-state address despite claiming local ties

Property Red Flags:

• Property has been owned by the same family for decades, now suddenly being sold by an unknown party
• Recent quit-claim deed transfer with no mortgage or consideration mentioned
• Property is vacant, undeveloped, or absentee-owned
• Property records show inconsistent ownership information
• Multiple transfers in a short period, especially involving quit-claim deeds
• Power of attorney documents that seem generic or template-based

Transaction Red Flags:

• Mobile notary from outside the community who doesn’t know the parties
• Closing scheduled at unusual locations (parking lots, hotels, gas stations)
• Buyer and seller never meet in person before closing
• Documents prepared by someone other than an attorney or established title company
• Last-minute changes to closing location, date, or wire instructions
• Pressure to skip normal verification procedures “to save time”
• Resistance to attorney involvement or legal review

If we see any combination of these red flags, the transaction stops until we’re satisfied that everyone is who they claim to be and has legitimate authority to complete the transaction.

How Eastern KY Title Stops Fraud Before It Happens

Our fraud prevention strategy is built on three pillars: attorney oversight, notary expertise, and local knowledge.

Attorney Oversight on Every Transaction

Lindon Gullett is an experienced title attorney. I’m a practicing attorney with 30+ years of experience. Every transaction we handle gets legal review from day one. If documents look questionable, if signatures don’t match, if something doesn’t make sense—we investigate before proceeding.

Large title mills use paralegals, document processors, and offshore staff to handle routine transactions. They only involve attorneys when something has already gone wrong. We start with attorney involvement and maintain it throughout the process.

Proper Notary Procedures

We only work with notaries we know and trust—professionals who understand Kentucky notary law, properly verify identity, maintain detailed journals, and recognize when to refuse a notarization. As the founder of Kentucky Notaries and the author of Kentucky’s most comprehensive guide to notary law, I personally train many of the notaries we work with.

We don’t use random mobile notaries who show up, stamp documents, and leave. We use professionals who understand their critical role in fraud prevention.

Local Community Knowledge

When a transaction involves Johnson County property, we know the area. We know the families. We know which properties have been held by which families for decades. And when something doesn’t match our institutional knowledge, we ask questions.

This isn’t about gossip or invasion of privacy—it’s about recognizing patterns and spotting anomalies that indicate fraud.

Identity Verification Protocols

We verify identity using multiple methods:

• Current government-issued photo ID
• Direct communication with the supposed seller (phone calls, video verification for remote closings)
• Cross-referencing public records to confirm property ownership and transaction history
• Background checks on parties when appropriate
• Attorney verification of powers of attorney and other authority documents

Document Authentication

We examine documents for signs of forgery or tampering:

• Comparing signatures across multiple documents
• Verifying notary stamps and commissions
• Checking document formatting for template-based forgeries
• Reviewing recording information to ensure proper chain of title
• Confirming that powers of attorney meet Kentucky legal requirements

Direct Owner Contact

When possible, we insist on direct contact with the actual property owner—not their “representative,” not their “nephew who handles their affairs,” but the actual person whose name is on the deed. If they’re elderly, incapacitated, or deceased, we require proper legal documentation of authority before proceeding.

Stewart Title’s Additional Protections

Our title insurance policies are underwritten by Stewart Title, one of the nation’s largest and most respected title insurers. Stewart maintains sophisticated fraud detection systems, requires specific verification procedures, and provides additional scrutiny for high-risk transactions. That institutional backing complements our local expertise.

What You Can Do to Protect Yourself From Real Estate Fraud

Whether you’re buying property, selling property, or simply own land in Eastern Kentucky, here are practical steps to protect yourself:

If You’re a Property Owner:

1. Monitor your property regularly.

Even if you don’t live on the land, check it periodically. Drive by, walk the property, watch for signs of unauthorized activity or development.

2. Review your property tax records annually.

Confirm the ownership information on file with the PVA is correct. If your address changes, update it immediately so you receive all property-related mail.

3. Register for deed monitoring services.

Some county clerks and private services will notify you if any documents are recorded against your property. This early warning can help you catch fraud before it progresses.

4. Secure your personal information.

Don’t leave documents with your Social Security number, birth date, or financial information where others can access them. These are the building blocks of identity theft.

5. Talk to your family about your property.

Make sure your children, grandchildren, and other heirs know what property you own and what your plans are. This prevents “misunderstandings” and makes it harder for others to claim false authority.

6. Create proper estate planning documents.

If you want someone to handle property transactions on your behalf, work with an attorney to create proper powers of attorney, trusts, or other legal documents. Don’t rely on informal arrangements.

If You’re Buying Property:

1. Insist on title insurance from a reputable local company.

Don’t skip title insurance to save money. It’s your protection against fraud, forgery, and hidden claims. And use a local company that knows the area and can spot red flags.

2. Meet the seller in person when possible.

Video calls or virtual closings are convenient, but in-person meetings make fraud much harder to execute. You can assess credibility, verify identity, and ask questions that might reveal inconsistencies.

3. Verify the seller’s identity independently.

Don’t just accept the ID they provide at closing. Google their name, check social media, look for public records that confirm they are who they claim to be and actually own the property they’re selling.

4. Be skeptical of deals that seem too good.

If the price is significantly below market value and the seller is in a big hurry to close, ask yourself why. Sometimes there’s a legitimate reason (estate settlement, job relocation), but sometimes it’s fraud.

5. Use an attorney.

Kentucky law doesn’t require attorney involvement in real estate transactions, but that doesn’t mean you should skip it. An experienced real estate attorney can spot fraud indicators that laypeople miss.

6. Never wire money without verbal confirmation.

Before wiring funds for a real estate purchase, call the title company using a phone number you found independently (not one provided in an email) to confirm the wiring instructions. Wire fraud is exploding, and verbal confirmation is your best defense.

If You Suspect Fraud:

1. Contact law enforcement immediately.

Real estate fraud is a serious crime. Contact your local sheriff’s office, Kentucky State Police, or the FBI if the fraud involves interstate activity.

2. Notify the county clerk.

If a fraudulent deed has been recorded, notify the county clerk immediately. While they can’t simply remove it, they can flag the record and help document the fraud.

3. Consult an attorney.

You’ll need legal help to void fraudulent documents, recover property, and pursue civil remedies against the fraudster.

4. Document everything.

Save all communications, documents, and evidence related to the fraud. This becomes critical in both criminal prosecution and civil litigation.

The Human Cost of Fraud (Why This Matters)

I’ve focused a lot on procedures, red flags, and technical prevention strategies. But let me bring this back to what really matters: fraud destroys lives.

The elderly woman who lost her family’s land to a fake power of attorney? She died six months later, never fully understanding what had happened but heartbroken that her grandchildren’s inheritance was gone.

The ex-wife who discovered her home had been sold by her forger ex-husband? She developed anxiety disorder and still struggles to feel secure in the home she eventually recovered.

The buyer who unknowingly purchased stolen property? They lost their $35,000 investment, spent another $15,000 on attorney fees, and developed such distrust of real estate transactions that they’ve never attempted to buy property again.

Fraud doesn’t just transfer property illegally—it steals security, destroys trust, and leaves emotional scars that last far longer than the legal battles.

That’s why we take this so seriously. That’s why we investigate when something seems off. That’s why we slow down transactions that are moving too fast. That’s why we ask uncomfortable questions and insist on verification.

We’re not trying to make the process difficult. We’re trying to protect families from devastation.

As Lindon says, “You can’t put a price on peace of mind. When someone walks out of our office knowing their transaction was handled right, that’s worth more than closing five deals in a day.”

Why “Just Because They Sign It” Doesn’t Mean It’s Real

The title of this post isn’t cute wordplay—it’s a fundamental truth about modern real estate transactions.

A signature on a deed means nothing if:

• The person signing isn’t who they claim to be
• The person signing doesn’t have authority to sell the property
• The signature was forged or coerced
• The signer lacked mental capacity to understand the transaction
• The document was fraudulently notarized
• The entire transaction was fabricated from scratch

In the old days—when everyone knew everyone, when deals were done on handshakes, when your word meant something—signatures carried weight because they represented real people in real communities with real reputations at stake.

Today, signatures are just ink on paper (or pixels on screens). They’re easy to forge, easy to fabricate, and easy to notarize improperly. Without proper verification procedures, local knowledge, and professional oversight, they’re meaningless.

That’s why you need a title company that does more than process documents. You need a title company that knows when something doesn’t smell right, asks hard questions, demands proper verification, and protects your interests even when it slows down the closing.

You need local expertise backed by institutional support. You need attorney oversight combined with notary professionalism. You need the “Rocky” of title companies—scrappy, nimble, and serious about quality.

John Holder, Attorney at Law (Licensed in Kentucky), is Market President & Title Agent at Eastern KY Title. With over 30 years of legal experience and thousands of closings completed as a loan signing agent, John leads operations with a legal-first approach built on experience in real estate law, business development, and risk mitigation. He’s known for simplifying complex transactions and his commitment to digital security and client education. John is also the founder of Kentucky Notaries and author of “Kentucky Notary Law & Practice: A Modern Guide.“

Professional Licensure & Credentials:

• Licensed Attorney – Kentucky Bar Association
• Market President & Title Agent – Eastern KY Title
• Verified in the KBA Attorney Directory

Don’t Let Fraud Steal Your Property. Let’s Verify It Right the First Time.

Protecting your property from fraud starts with choosing a title company that knows the difference between rubber-stamping documents and actually protecting your interests. Contact Eastern KY Title for closings backed by attorney oversight, notary expertise, and the local knowledge that catches fraud before it costs you everything.

Call us today at (606) 226-0024 or email info@easternkytitle.com to discuss your transaction. We serve Johnson County, Magoffin County, and surrounding Eastern Kentucky communities with smooth, stress-free closings backed by Stewart Title.

Because a signature on paper is worthless without the integrity behind it.

Best regards,
Eastern KY Title Team