For most of us, our properties will be the most valuable asset we own. To drum up some cash, you may decide to put your home on the market or mortgage it. However, this could see you an attractive target to fraudsters!
Property fraud is where a fraudster begins by stealing your identity, before going on to sell or mortgage your home by pretending to be you. Should this not be discovered immediately, you as the property owner could find that your safe haven has been sold or transferred without your knowledge. Here we will go into further detail about property fraud and how forensic accountants can assist in fraudulent property investigations.
Understanding Property Fraud
Property fraud, otherwise known as house-stealing or deed fraud is a fast-growing crime in the UK. This kind of crime can go undetected and cause all kinds of issues, such as the unlawful transfer of ownership of property. For instance, property fraud can happen if someone forges your identity and transfers your home into their name.
While it does sound absurd, property fraud does happen and is far more common than first believed. In fact, in the past 5 years, it is believed attempted property frauds have risen by 84%. Forensic accountants play a pivotal part in investigating property fraudulent activities. They use their specialist knowledge to detect financial irregularities. They can indicate whether fraudulent activity has taken place as well as examine loan and mortgage documents to establish if they have been falsified.
Warning Signs
Being aware of the warning signs of property fraud is vital. There are certain things to look out for, such as whether the only contact details a party provides are their email address or telephone number. You may be instructed by one party and only converse with the other by email, telephone, or post.
Other warning signs include if your client relies on a utility bill as evidence that they reside at a certain property. If you resonate with these red flags, check out Draycott Browne who are fraud solicitors that have extensive experience in property fraud. They have successfully defended a wide array of fraud allegations since 1998.
Unfortunately, property fraud is on the rise. In fact, fraudsters are coming up with new methods every day, so it’s your job to look out for anything that seems out of the ordinary. In many instances, there will be several signs that fraud is being committed.
Types of Property Fraud
There are several types of property fraud you need to know about. One of the most common is identity theft and impersonation. This can involve criminals impersonating anyone involved in property transactions, such as buyers, owners, lenders, and borrowers.
Regarding buyers, a criminal can use a false ID to make an offer on a property before withdrawing before any finance is exchanged. Doing this gives them knowledge about the property owner to commit title fraud. Mortgage fraud is another type of property fraud. This involves criminals stealing money from a private lender or financial institution through the mortgage process.
There you it, the types of property fraud and how to spot the warning signs. These tips could help you implement measures to protect a property, but also know where to go should you need assistance.