Safeguarding your property from fraud
Property ownership is a cornerstone of financial stability for millions, yet the threat of property fraud remains largely underestimated. Several investigations, including a revealing episode of Channel Five's 'Scams: Don't Get Caught Out' aired earlier in the year, highlighted the everyday risk of home theft and the significant surge in property fraud. Stuart Forsdike, founding partner at PCS Legal and advisor at Title Guardian, joined host Alexis Conran to delve into the mechanics of this crime and the proactive solutions available to protect homeowners.
The growing threat of property fraud
The risks facing landlords are numerous. Channel Five's programme exposed an 84% rise in digitally-driven fraud targeting the property sector as recently as 2022. The show highlighted the increasing threat of title deed fraud, a sophisticated digital crime that can result in the theft and illicit sale of properties, leaving legitimate owners vulnerable.
Stuart Forsdike, said: "Fraudsters target your property due to its value. They only need one successful hit to accrue an asset that’s large in value". He explained how scammers exploit various circumstances, such as properties not yet registered with Land Registry, vacant properties, and those rented out. The alarming reality is that everyone is a potential target.
The role of AI in escalating property fraud
Artificial Intelligence (AI) has become a double-edged sword in the realm of property fraud. While it offers numerous benefits, it also provides new tools for fraudsters. AI can easily create convincing fake identities, generate realistic documents, and even simulate human interactions. These capabilities make it easier for scammers to clone identities and commit title fraud. AI algorithms can quickly scan public records and social media to gather information on potential targets, increasing the efficiency and success rate of fraud attempts.
AI's ability to analyse large datasets and identify patterns means that fraudsters can automate the search for vulnerabilities, such as unregistered properties or properties with absentee landlords. Moreover, AI can facilitate the creation of sophisticated phishing schemes, tricking property owners into revealing sensitive information that can be used for fraudulent purposes.
Title fraud: A digital crime
Title fraud often involves identity theft, where fraudsters clone the identity of property owners to transfer ownership illegally. This can be particularly devastating for landlords. The simplicity with which a tenant could assume the identity of a landlord by changing their name via Deed Poll, exploiting legal loopholes to perpetrate fraudulent transactions, is alarming.
“If a landlord lets out a property, there is nothing to stop their tenant going to a lawyer and changing their name officially by Deed Poll. They would then have new identification documents sent to the property address in their new name, which matches the landlord's. At this point, they can walk into a law firm, pass ID checks, and potentially sell the property” says Forsdike.
Tips for landlords to protect themselves
Given the sophisticated nature of modern fraud, particularly with the advent of AI, landlords need to take proactive steps to protect their properties:
Regular monitoring: Use services like Title Guardian which employs advanced technology to monitor sales and letting portals, including data from Airbnb. This allows for immediate detection of unauthorised activities, ensuring landlords are promptly notified and can take necessary action to prevent potential fraud. The service also monitors thousands of digital sources, including HM Land Registry and Companies House, where property owners’ details appear, and fraudulent activities often begin.
Secure document storage: Utilise secure document storage solutions, such as Title Guardian's Document Vault. This feature allows landlords to archive property, financial, and personal documents safely, ensuring they are protected against identity theft and fraud. Landlords can upload and manage documents easily, while partner law firms and estate agents can transfer relevant documents directly to the platform.
Verification of tenant identities: Implement rigorous tenant screening processes. Verify identities through multiple sources.
Stay informed: Keep abreast of the latest fraud tactics and technologies. Education is a key defence against evolving threats. Participating in webinars and reading up-to-date articles on property fraud can help landlords stay vigilant.
Legal safeguards: Ensure your property is correctly registered with the Land Registry and consider placing a restriction on the title. This can prevent the sale or mortgage of the property without additional verification.
Title Guardian's role in combating fraud
Title Guardian was established to address these growing threats. It is the first service in the country designed specifically to combat property-related fraud. Since its inception, Title Guardian has uncovered over 100 cases of property fraud within just a few months, a number expected to rise significantly as awareness and usage grow.
In one notable case, Title Guardian's monitoring system detected unusual activity on a landlord's property, which was listed for sale without the owner's knowledge. Immediate notification allowed the landlord to intervene before the fraudulent sale could proceed. This incident highlights the critical importance of real-time alerts and proactive monitoring.
Proactive steps to protect your property
The revelations from 'Scams: Don't Get Caught Out' highlights the urgency for homeowners and landlords to safeguard their properties. HM Land Registry offers basic safety measures, but these can be limited. Their property alert email service notifies homeowners of title deed changes, but often too late in the process, after the property sale. Therefore, proactive steps, such as subscribing to Title Guardian or seeking expert guidance, are essential.
By leveraging advanced monitoring, immediate alerts, and secure document storage, landlords can have complete peace of mind.
To find out more and to get free protection, simply click the button below and register in just a few minutes.
Got a question or want a quote: head to titleguardian.com, or call one of our team on 0203 442 0276.
To watch Channel Five's 'Scams: Don't Get Caught Out' which features property fraud, catchup online by downloading My5, and watch Season 2: Episode 4.
