The real estate market is a tempting target for fraudsters who are looking to make a quick buck. One of the most common types of real estate fraud is vacant property fraud. This type of fraud involves a fraudster identifying a vacant property, claiming ownership, and then selling or refinancing it without the knowledge of the actual owner.
Vacant property fraud can take many forms, including wire fraud and title fraud. In wire fraud, the fraudster uses social engineering tactics to trick the victim into transferring funds to their account. In title fraud, the fraudster uses forged documents to transfer ownership of the property to themselves.
According to the FBI, wire fraud in real estate transactions has increased by 1,100% since 2015. The National Association of Realtors also reports that real estate wire fraud is a top cybercrime threat, with losses of over $1 billion reported in 2020 alone.
But it’s not just wire fraud that real estate investors need to worry about. Vacant property fraud can also involve the creation of fake documents, such as deeds, mortgages, and title insurance policies, which can be used to sell or refinance a property without the owner’s knowledge.
So how can real estate investors protect themselves from vacant property fraud? One solution is to use a service like CertifID, which offers secure digital identity verification and fraud prevention for real estate transactions.
CertifID uses advanced technology to securely verify the identities of all parties involved in a real estate transaction, including buyers, sellers, and title companies. This helps to prevent wire fraud by ensuring that all wire transfer requests are legitimate and that funds are being sent to the correct recipient.
CertifID also offers protection against title fraud by verifying the chain of title and alerting users to any suspicious activity, such as the creation of fake deeds or mortgages.
In addition to using a service like CertifID, there are other steps that real estate investors can take to protect themselves from vacant property fraud. These include:
Checking the property regularly: Vacant properties are at higher risk of fraud, so it’s important to regularly check on any properties that you own. This can include checking for signs of break-ins or unauthorized entry.
Securing the property: To prevent unauthorized access, make sure that all doors and windows are locked, and consider installing security cameras or an alarm system.
Monitoring public records: Keep an eye on public records to ensure that no fraudulent documents are filed against your property. You can also sign up for alerts from your county recorder’s office to be notified of any changes to your property’s title.
Purchase an Enhanced Homeowner’s Title Insurance Policy: A reputable title company issuing an Enhanced Homeowner’s Title Insurance Policy can provide insurance coverage for both prior and future acts of fraud and forgery.
Vacant property fraud is a serious threat to real estate investors, but by taking the necessary precautions and using a service like CertifID, you can protect yourself and your investment. Don’t let fraudsters take advantage of your vacant property – take action to protect yourself today.
Download a US Secret Service advisory curtesy of CertifID and federal law enforcement.
Home title theft and deed fraud are serious issues that can have devastating consequences for homeowners. Fortunately, there are steps you can take to protect yourself from these crimes.
Whether you are a first-time homebuyer or a seasoned property owner, this information about home title theft will provide you with valuable insights into how to protect your assets and minimize the risk of title theft.
Real estate fraud is a serious issue that can have devastating consequences for homeowners, home buyers, and title insurance agents. Homeowners should be aware of the different types of real estate fraud schemes so they can protect themselves from becoming victims.
