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
Is it time to look at overseas property?
As the UK property market shows some signs of recovery many experts are pushing the idea of investing in overseas property before the worldwide economy moves into a growth phase. However, with various reports suggesting a mixed outlook for the UK property market in the short to medium term is there really any rush to invest your funds into bricks and mortar?
Unfortunately, so far th...
Poor summer has Brits looking to sunnier climes
This year's miserable summer has a record number of Brits to looking to buy a property in sunnier climates, according to Yorkshire Bank.According to the bank's research, as many as 43 per cent of us are now considering the idea of buying a place in the sun, while the number of Brits who already own a property abroad has risen by 45 per cent to 800,000 in the last couple of years. The biggest draws...
Read MoreNationwide sees house price growth accelerate
04/08/2015 The latest housing pricing index from Nationwide has shown that the increase of pace in UK house prices accelerated in July to 3.5%. UK house prices increased overall by 0.4% in July, taking the average cost of a home from £195,055 in June to £195,621in July. The report claimed that demand is still encouraging, but if supply would keep up with this was called “unclear”....
Read MoreIs renting a viable alternative to a house purchase?
As the UK property market continues to spiral downwards, despite the attentions of the UK government, many people are now looking towards the rental market which has also had its fair share of troubles in recent times. Rental values have fallen in line with house prices and there are now some very attractive lease and rental options open to many areas of the UK. So is renting a viable option in th...
Read MoreDampened property market growth downplayed
Recent interest rate rises from the Bank of England are not having the dampening effect on house prices many market indicators suggest, according to the Council for Mortgage Lenders (CML).Publishing its quarterly market commentary today, the CML claims that forward-looking data shows two factors are mitigating the impact of three rate hikes in five months on Britain's property market.Following the...
Read More