Taking A Closer Look at Fraudulent Property Activities and Prosecutions In the UK
Property is normally the most valuable asset people own. Properties can be sold and mortgaged to raise money, which can put the spotlight on homeowners and leave them vulnerable to fraudsters. The most common type of property fraud is where criminals steal a homeowner’s identity and use it to sell or mortgage their property without their say-so.
Unfortunately, fraudulent property activities are on the rise and pose a significant threat to the UK economy. Here we will take a look at some of them, as well as prosecutions linked to property fraud.
Title Fraud and Registration Fraud
Title fraud is when a criminal takes a property owner’s identity, before altering the property title from the owner’s name to their own. Criminals may use a Land Registry application to conduct this which can be done by registering a forged mortgage or transfer (known as registration fraud). After this is complete, criminals can apply for a loan using the property owner’s equity as collateral.
When performing due diligence, you must look over all documents, ask questions, and follow up on any inadequate replies to alleviate this. Land Registry’s register of title is protected by state guarantee. Anyone who has been damaged by a mistake in the register has a good chance of being repaid via public funds. The government have introduced the Land Registry Property Alert Service which is designed to protect your property from fraud.
Mortgage Fraud
Mortgage fraud occurs when an individual defrauds a lender through the mortgage process. Criminals can perform mortgage fraud by making false claims on your application. Mortgage fraud is particularly popular with organised crime groups. This is because it’s relatively low-risk and highly profitable. In many cases, mortgage fraud is used as a form of laundering money obtained from illegal activities like trafficking or supplying drugs.
If you are facing the possibility of a mortgage fraud charge, you must find a reputable solicitor as quickly as possible. Draycott Browne have a team of fraud solicitors who can assist with your case. They have expertise in mortgage fraud and can explain the process in greater detail.
Payment Diversion Fraud
Payment diversion fund is another common type of property fraud. This involves criminals hijacking email communications between a lawyer and their conveyancing client, then contacting the client pretending to be the lawyer. The reason for this is simple – to persuade individuals to send funds to an account they’re in control of, rather than the correct solicitor’s account.
To avoid falling victim to this fraud, you must be careful when viewing your emails. If you receive an email you are not sure about, speak to your conveyancing solicitor first to verify your account details.
Fraudulent property activities are continuing to rise. If you have been the victim of such criminal behaviour, it’s crucial that you have access to strong legal representation who will fight your corner. While the UK government have stepped in and introduced special measures to strengthen property laws, there’s still a part homeowners can play in knowing what types of property fraud there are, and what actions and measures to put in place to protect their assets.
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