Home title fraud is a serious crime where an individual fraudulently alters the title of a property to transfer ownership to themselves without the knowledge or consent of the true owner.
Though a very small fraction of homeowners are victims of property fraud a year, 11,727 individuals in 2022, the value of the crimes has increase by 14%. Clearly, criminals are seeing property crime as a valuable endeavour.
Home title fraud in more detail
This type of fraud often begins with identity theft, where the fraudster gathers personal information about the property owner. Once the fraudster has the necessary information, they can forge the property owner’s signature on a deed, effectively changing the title of the property.
Inevitably, home title fraud has severe consequences for the property owner. The fraudster can then sell the property or secure loans against the property’s equity, leaving the true owner unaware of the situation until they receive foreclosure notices or other legal documents. In some cases, the fraudster may even use the property as collateral for multiple loans, further exacerbating the financial losses for the victim
Protecting yourself from home fraud
To protect yourself from home title fraud, it is essential to be vigilant about your property and financial information. Here are some steps you can take:
- Check Your Credit Report: Regularly review your credit report to identify any suspicious financial activity that may indicate identity theft or home title fraud.
- Pay Attention to Bills: Ensure you receive all your bills, such as property tax bills, mortgage bills, and utility bills. Failure to receive these bills can be a sign of home title fraud.
- Verify Home Information: Periodically check the information on your property with your county’s deed office to ensure there are no changes or discrepancies.
- Use Third-Party Services: Consider using title insurance or title protection services that can help prevent home title fraud by “locking” your title.
- Be Cautious with Personal Information: Avoid sharing personal information online or with unverified sources, as this can increase the risk of identity theft and home title fraud.
Though relatively low-risk, being aware of the dangers of home title fraud is still useful.
Source: AS USA
