There is an increase in the occurrence of title fraud in Canada as well as other types of real estate fraud in recent months. With everything going on, fraudsters are taking advantage of the pandemic to take over properties. They pose as the owner and pretend that they’re just normal people who are down on their luck and need to sell their home or get a mortgage loan. Everyone is at risk although their primary victims are retirees and homeowners who are too trusting with their personal details.
What is Title Fraud?
According to Danny Papadopoulis of Homebase Mortgages in Toronto, title fraud happens when a fraudster steals the identity of a homeowner to sell or mortgage the homeowner’s property as their own. They steal the homeowner’s sensitive data by email phishing, intercepting mails, or via fraudulent phone calls and use the data they gather to create fake IDs to pose as the homeowner. Armed with a fake ID and forged property title, they can then take a mortgage loan or even sell the homeowner’s home.
Can A Bank Protect You from Real Estate Fraud?
Banks work overtime to protect against all sorts of fraud. They often have dedicated security and anti-fraud teams that use the latest technology to identify and prevent fraudulent transactions. In Canada, banks work with the Canadian Bankers Association and several real estate task forces along with local law enforcement to look into real estate fraud and prevent it from happening. However, even with constant vigilance, fraudsters can and will still find a way to exploit weaknesses in the banks’ security system. As a homeowner, you must do your share to protect yourself against real estate fraud.
How to Protect Yourself Against Real Estate Fraud
The first step fraudsters do is steal your identity. You have to make sure that you safeguard your personal information from identity thieves by doing the following:
- Not giving out your personal details over the phone or the internet unless you are the one who initiated the call or you are filling up a form online on an official website.
- Keeping tabs on your bills. Bills that do not arrive may have fallen in the hands of fraudsters.
- Guarding your mail. If some mails can be made electronic-only, then opt for that and make sure you have 2-factor authentication to access your accounts.
- Protecting items that contain personal information such as your phone, physical identification cards, tablets, and computers.
- Staying away from deals that seem too good to be true if they are in exchange for your personal information.
- Getting rid of mail and documents that you no longer need safely. Use a paper shredder for mail and documents and scratch out shipping labels from packages. Identifying information should not be readable before throwing anything out.
- Guarding your Social Insurance Number (SIN) and making sure you keep your SIN card where it cannot be easily be found.
- Checking and reviewing your credit report regularly to look for inconsistencies or suspicious entries.
Note that there are more ways to protect yourself from title fraud. The more astringent means to protect yourself will need the help of private investigation services from professional providers to make sure that all your bases are covered. Consider it as an investment for your overall safety. Remember, fraudsters do not stop with just real estate fraud.