Home title fraud is rapidly becoming more common. In fact, it is now largely considered to be one of the fastest growing cybercrimes in the US. While technology can protect us and our data in many ways, it also unfortunately presents new ways for criminals to target us.

But what is title fraud? Of course, a title in this context refers to a person’s ownership of real estate. When title fraud occurs, that means that someone else obtains the title to your home (the legal ownership) by editing details on the title – essentially swapping your name for theirs. This is usually accomplished first by stealing your identity.

Of course, this doesn’t mean that you’re going to be asked to leave the property while they move in!

Instead, once the title is transferred to the name of the fraudster, they will then use the property as collateral when taking out loans. That means that your property will be seized should they default on their loans. Of course, the fraudster has no intention of paying the loans back, and therefore they can get away with the money while the victim is left disputing ownership of their home and the lenders are left out of pocket.

This is an extremely lucrative strategy for cyber criminals and anyone skilled at identity theft. The real homeowner will meanwhile typically know nothing of the scam until they receive foreclosure letters from a lender they have never dealt with. This is a highly stressful experience.

Title Fraud vs. Mortgage Fraud

While they may seem similar, mortgage fraud and title fraud are in fact very different. In mortgage fraud, potential buyers, sellers, or lenders, will provide false information in order to obtain a mortgage loan. However, home title fraud occurs long after the mortgage process is over.

Is This Common?

As mentioned, title fraud is a crime that is becoming increasingly common. In 2017, the FBI reported that there were 301,580 wire fraud complaints that resulted in losses of $1.4 billion. If we narrow that number down to those involving real estate, then over 9,600 people lost a total of $56 million that year. Not all of these cases involved title fraud, but it is likely that many did. It also demonstrates just what a serious problem wire fraud is in general.

Are You Vulnerable?

Title fraud can affect literally anyone, but there are some groups that are particularly vulnerable. These include:

• Elderly homeowners – These individuals are common targets as they are perceived as being less savvy with regards to internet security and protecting their data. Likewise, they will typically possess greater home equity and may even own their properties outright.
• People owning multiple properties – The assumption is that such owners will be less able to pay close attention to their many properties. Fraudsters thus have more opportunity to commit crimes before they get noticed.

How to Protect Yourself

If you want to protect yourself against title fraud, then you can do so through diligence and caution. That said, it’s also important not to hold yourself responsible should you still fall victim. There is no way to ensure that you will be completely safe, but taking the following steps can significantly lessen your chances of falling victim to this vicious scam.

First, you should check your credit report. This is a record of loans and other activities that take place under your name and as such, it can help to highlight any unwanted or unauthorized action.

You should also look out for your bills. If you haven’t received bills that you normally would, then this might mean they are being interrupted in transit. In other words – it is highly likely that fraudsters are stealing your mail and using this as a way to obtain sensitive data.

Verify your home information by visiting the county deed office or their website. This will allow you to ensure that your name is still on the title. Of course, this isn’t necessarily something you will be able to do on a highly regular basis – but if you suspect there is an issue, then this method allows you to check and be sure.

You can protect your title with title insurance policy. This is something you can buy when you purchase your home or any other property.

What to Do

If you are a victim of title fraud, then you should report the situation to the relevant agencies (Equifax, TransUnion, Experian), at your earliest convenience and freeze your credit. You should also file a report of identity theft (if you are sure this has happened) with the police.