What can you do to protect yourself from property fraud?
This article was written for and published as original content in the East Anglian Daily Times property section.
The UK property market is increasingly becoming a hotspot for fraud. Property fraud poses significant threats to buyers and sellers alike. Understanding these dangers is crucial for safeguarding investments and maintaining the market’s integrity.
One particularly prevalent form of property fraud is title fraud, where fraudsters impersonate property owners to transfer ownership to themselves or a third party. This type of fraud often targets properties that are vacant, mortgage-free, or owned by landlords living abroad. The consequences for the rightful owner can be devastating, ranging from lengthy legal battles to reclaim ownership, to significant financial losses.
Mortgage fraud is another widespread issue. This involves providing false information on mortgage applications, such as inflating income or misrepresenting employment status. In some cases, criminal organizations collude with industry insiders to exploit the mortgage system. Such fraud undermines the lending process, leading to potential financial instability within the market. For individuals, it can result in unaffordable debt and even repossession of the property.
The rise of digital transactions in conveyancing matters has also given rise to cyber fraud. Fraudsters exploit vulnerabilities in online systems to intercept emails and redirect large sums of money intended for property transactions to their own accounts. This type of crime can lead to substantial financial losses for buyers and sellers alike, often with limited recourse for recovery.
What can you do to protect yourself?
- Speak to a Solicitor as to your options;
- If you own a property, sign up to the Land Registry Property Alert service. If you are on this, the Registry will contact you by e-mail if they receive any applications or movement in relation to the legal title to your property, giving you the chance to challenge these before the Register is changed;
- Never send money to your Solicitor until you have spoken to them to check the Bank details – verify their phone number from a reliable source and do not rely on numbers given to you in an e-mail;
- Always be suspicious of e-mails telling you to do something under time pressure, such as asking you to send money within a particular time frame.
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