ALTA's Best Practices: The Guide to Securing Your Closings

The American Land Title Association (ALTA) recently released two guidance documents aimed at combating the increasing rates of fraud in real estate transactions. The updated Best Practices Framework (Version 4.2) and the companion Identity Verification (IDV) Guidance provide title and settlement companies with clearer direction on using technology to protect closings from fraud, forgery, and impersonation.

The main takeaway is that robust identity verification is essential for protecting both the industry and consumers from fraud. The tools chosen—whether human oversight, training, or technology—will determine a company's ability to meet industry expectations and prevent fraud.

Why ALTA Updated Its Guidance

Real estate fraud is on the rise, with seller impersonation scams, forged deeds, and synthetic identities becoming common tactics that cost consumers and lenders billions each year. ALTA’s new publications address this reality:

• ​The Best Practices Framework now recommends companies adopt a documented identity fraud prevention program and monitor signing professionals to ensure compliance, proper licensing, and insurance.
• ​The new Identity Verification Guidance outlines specific methods agents can use to answer three critical questions in every transaction:
  1. 1.Is this a valid government ID?
  2. 2.Does the person on the ID match the individual in front of me?
  3. 3.Is this person the actual party to the transaction?

The responsibility to verify is now mandatory, and ALTA encourages a layered approach that combines people, process, and technology.

Best Practices for Notarization and Signing Professionals

ALTA’s updates clarify that oversight of notaries and signing professionals must be tailored to the situation.

Title Company Employees

When the notary is an employee, the company must:

• ​Conduct background checks on employees who notarize or access settlement documents.
• ​Train staff on real estate fraud risks, including impersonation schemes.
• ​Control which signing professional meets with consumers.
• ​Provide tools to validate domestic and foreign IDs.
• ​Establish protocols to detect and escalate suspected fraud.

Proof supports in-house notaries with fraud training and integrated ID tools.

Third-Party Signing Professionals

For notaries outside the company (such as those in Proof’s Notarize Network), ALTA requires documented proof of:

• ​State licensure or verifiable industry designation.
• ​E&O insurance and surety bond coverage (as required).
• ​Evidence of fraud training and access to ID verification tools.
• ​Ongoing vendor oversight to ensure compliance.

Proof manages these requirements for its network, ensuring notaries are compliant, trained, and authorized.

Remote Online Notarization (RON)

For RON, Best Practices specify:

• ​The RON platform must meet state standards, be state-authorized, and Title Insurer approved.
• ​It must retain video recordings and safeguard non-public information (NPI).
• ​Fees must comply with state regulations.

Proof’s platform is designed to meet and exceed these requirements, ensuring legal and defensible transactions.

Breaking Down ALTA’s Identity Verification Guidance

ALTA’s IDV Guidance provides a checklist of recommended methods to prevent impersonation and forgery, emphasizing a layered verification process:

1. 1.Government ID Verification – Checking IDs for authenticity, tampering, and consistency.
2. 2.Database Verification – Matching personal information (name, DOB, SSN, address) against authoritative data sources.
3. 3.Personal References – Independently contacting real estate agents, lenders, or attorneys.
4. 4.Biometric Verification – Comparing a real-time selfie to the ID photo, including liveness detection.
5. 5.Open-Source Checks – Searching public data tied to phone numbers, emails, and photos.

Fraud indicators such as geographic mismatches, unusual timing, and repeated failed verifications should trigger escalation procedures. Companies are expected to document their response plan and notify law enforcement when necessary.

How Proof Helps Title Companies Comply

Proof’s platform addresses the challenges highlighted by ALTA’s guidance by combining trusted notaries, credential checks, biometric tools, and fraud analytics. This makes compliance straightforward and protects both consumers and settlement agents.

Proof’s alignment with ALTA’s recommendations includes:

• ​Trusted and Vetted Notarization: Proof’s notary network meets state authorization and insurer approval requirements.
• ​Credential Analysis & Multi-Factor Verification: IDs are validated using government databases, barcodes, and fraud-detection algorithms.
• ​Biometric Liveness Checks: Real-time selfies are compared against ID photos to prevent spoofing and deepfakes.
• ​Database & Device Intelligence: Additional signals like phone number risk, synthetic identity detection, and device fingerprinting are used.
• ​Audit Trails & Record Retention: Every transaction creates a secure digital record.
• ​Fraud Awareness Training: Notaries receive specialized training on recognizing fraud schemes.

This layered defense aligns with ALTA’s mandate to use multiple verification methods for maximum protection.

What Comes Next

ALTA’s updates make it clear that identity fraud prevention is an evolving challenge. As fraudsters adapt, so must the guidance and the technology used by settlement companies. Technology partners who update quickly are essential.

Proof views ALTA’s updates as validation of its ongoing work to protect every transaction with a network built on trust, identity, and security.

By adopting Proof, title companies can:

• ​Protect against seller impersonation and forgery.
• ​Give underwriters confidence in the integrity of their process.
• ​Safeguard non-public information while meeting compliance obligations.
• ​Deliver smoother, faster closings with trusted fraud prevention and identity checks.

The message from ALTA is clear: identity matters. With Proof, title companies can stay ahead of fraud and keep every closing secure.