Upsurge in ID fraudsters taking properties

October 27, 2008 | posted by Pam Atherton in Mortgages | comments (0)

We all know that identity fraud is on the rise.  But one of the most disturbing developments revealed by the UK’s fraud prevention service, CIFAS, is the swing away from ‘previous address’ fraud to ‘current address’ fraud.

Current address fraud occurs where the victim lives at the ‘current address’ given on the fraudulent application. The fraudster is often a neighbour living in the same block of flats as the victim and applies for financial products by assuming the identity of the victim.

This can easily be done where there is a shared hallway and fraudsters can  intercept their victim’s post.

But an even more frightening  development is the rise in mortgage fraud, with analysts estimating that as many as 60,000 UK property have been acquired with fraudulent loans through  identity theft, with possibly as much as £17bn sitting on lenders’ books.

Chanel 4 news last week reported that in the year to date, the Land Registry paid out almost £4m in compensation to lenders and defrauded homeowners, compared to just over £2m om 2006-07.

Paul Doxey, managing director at Navigant Consulting told Channel 4 news: “In the ’80s and ’90s we saw a lot of property fraud, but what’s different in the recent frauds is the explosion of ID fraud.

It’s now a lot easier for criminals to obtain false IDs through the black market, which they can use as a cover for these frauds.”

Fraud lawyer Gary Miller of Mischon de Reya Solicitors, who helps lenders track down fraudsters, told Channel 4 news: “My experience tells me that what we see is the tip of the iceberg.”

People with buy to let properties or flats with shared mailboxes are the most vulnerable to ID theft, but no one can be complacent. Shredding bank and credit card statements and having post re-directed when you move is essential.

Check your credit record regularly with a credit reference agency such as Experian for any fraudulent activity conducted in your name.

David Hollingworth of London & County Mortgages says: “In the case shown on Channel 4, it was a buy to-let-property which was transferred into the name of a fraudster. It may have been a case of the landlord failing to have his post redirected to his home address.”
 
For more on identity fraud visit:
www.stop-idfraud.co.uk
http://www.cifas.org.uk/
http://www.experian.co.uk/

Read our guide to Identity Theft Insurance:
http://www.defaqto.com/consumer/credit-cards/guide-identity-theft-insurance.aspx

Read our guide to Card Protection:
http://www.defaqto.com/consumer/credit-cards/card-protection.aspx

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Biggest fraud threat to UK households

May 1, 2008 | posted by Pam Atherton in Investments, Savings | comments (1)

An upsurge in boiler room victims coming forward has prompted The City of London police to issue a warning that these scams now represent the biggest fraud threat to UK households.

500 boiler rooms are believed to operating from Spain alone, with many specifically targeting the UK. The boiler room scam is  for high pressure salesmen to telephone unsuspecting investors at home and persuade them to buy shares which are of little value or don’t existat all.

While it is easy to dismiss people who fall for this ruse as naive and gullible, the tactics used to con victims are sophisticated and relentless. We have even had a boiler room salesman from Florida hassling an employee in the Defaqto office.

These salesmen get hold of investors’ names and phone numbers by buying shareholder lists and once in their grip, they can soon start to appear to be convincing. They direct investors to what look like the websites of genuine companies and send them glossy brochures promoting the shares they are selling.
A boiler room insider told the BBC Radio 4 “You and Yours” programme that the industry is worth billions of pounds. He said that salesmen were trained to build up a relationship with the investor through frequent, smooth-talking phone calls, by whetting their appetite for making a quick buck, and then just “ripping them apart.”

The FSA estimates that total annual losses due to these scams stand at £200m, but the City of London police think the true figure is far higher.The regulator added that it is a criminal offence to sell shares to UK investors without being authorised and that it is likely to be a fraud to misrepresent the value of shares.
 

Steve Wilmot of the City of London police said: “There may be thousands of people out there who don’t even know they have been conned. They may have bought shares and filed away the certificates without knowing that they are worthless.

“The more publicity there is on these scams, the more people come forward saying they think they may have been defrauded. It is one of the biggest threats to members of the public. We have seen victims losing anyting from £2,000 to £1.5m”

So if you receive one of these calls, just put the phone down.   

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