Thieves using identity of dead homeowners in scams
06/05/2016
New research has revealed that fraudsters are impersonating homeowners who have recently died, or solicitors, in the hope of stealing money in mortgage transactions.
The number of thieves using the identities of those who are deceased to make mortgage applications to lenders is increasing, Experian said.
More commonly, fraudsters are mimicking solicitors to trick buyers into putting a deposit in to the fraudsters account.
This money, which is usually large sums, is rarely refunded by the banks.
According to the City of London Police fraud investigators, the average loss to this fraud across England and Wales is £112,310.
The type of fraud in which a deposit is tricked out of buyer is more of a threat to those involved in a property purchase.
In property purchases, fraudsters are on the lookout for people who are buying or selling a home. They then intercept emails between those people and their solicitors.
The fraudster then sends an email claiming that the deposit is due and gives bank details for the money to be transferred. It quickly disappears from this account, leaving victims out of pocket.
The trade body for the industry, the Conveyancing Association, has launched a new scheme and guide which aims to reduce property buyers’ exposure to this kind of fraud.
Nick Mothershaw, fraud expert at Experian said:
“Because of the values involved, the impact on people's lives can be devastating.
"Large payments have been diverted and fraudsters have disappeared with the money. We'd urge anyone who has fallen victim to these kinds of scams to contact Action Fraud."
Suggestions from the Conveyancing Association include sending small test payments, or secure communication to allow buyers to cross-check bank account details.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by askin a question online, calling us on 0800 092 1245 or arranging a visit.
Share this..
Related stories
UK homeowners pulled into negative equity trap
A review of the UK property market may look promising for the short to medium term but for those who acquired properties back in the early 2000s the doom and gloom will go on. A report issued today claims that those who acquired property in the UK just prior to the 2007 peak in the market will remain in negative equity until at least 2014 with many struggling to cope with increases in energy bills...
Read MoreThere is every place like home
While mortgage advisers are touting Spain as a good investment for both the long-term and the short-term, Brits are put off a good property investment by the fact that too many of their own already haunt the Spanish shores. While nearly half of all mortgage advisers believe that Spain is the best long-term property investment in the world, 82 per cent of UK consumers said they would be most put of...
Read MoreHouse prices 'fall 1.6 per cent'
House prices fell by 1.6 per cent in February, new government figures reveal.The new report, from the Department of Communities and Local Government, also showed that the annual rate of property inflation was down to 6.7 per cent.This forms a 1.3 per cent drop from January's figure - and is indicative of the difficulties buyers are having with securing a mortgage in the credit crunch.Overall, the...
Read MoreHalifax forecasts flat UK housing market in 2010
Hot on the heels of the Nationwide Property survey which suggested a 10% to 15% increase in UK property prices in 2010, the Halifax survey is very different. After revealing that house prices grew by just 0.6% in January 2010, against a six monthly average of 1.1%, there are growing fears that more properties will be brought to market which will see pressure on prices. The average home in the U...
Read MoreIs the UK property market dead?
As the UK property market continues to come under severe pressure and head downwards there are many people suggesting that the market may not recover for anything up to 10 years. However, these are probably the very same people who believed that the boom times in the UK property market would continue indefinitely and never saw the current recession arriving on the UK shores. So is the UK property...
Read More