The data, obtained via a Freedom of Information Request to the UK Land Registry, show that in the last decade, 259 property fraud cases have been prevented – with the average targeted property having a value of £478,136.
Over the page 14 years, the average number of annual claims is just shy of 1,000 – yet the average number of fraudulent cases prevent a year is a mere 31. This means that less than 3% of property fraud is prevented.
In the last 14 years, 13,997 property fraud claims have been made. With the total pay-out amounting to £120m, that means that the average property scam costs victims £8500. As a comparison, online scams – which receive a lot of press – set the average victim back £600.
Between 2014 – 2018, property fraud renters reported losses of £22.1 million – with the average renter claiming £1396 from fraud.
What’s most shocking is the simplicity with which property fraud can take place - and, as all property titles (in England and Wales) are published online, fraudsters are utilising this data.
One way a scammer may utilise this information is by taking out a mortgage using the victim’s identity. They would place some of their cash into an account and make a few repayments for the mortgage before removing the money. The mortgage lender is then only made aware once the dummy account runs out. The victim – the property deed holder – is then left liable for the debts incurred.
On whether enough is being done, the HomeOwners Alliance added:
“Although the lenders, conveyancers and others take property fraud seriously, especially given the sums involved, there needs to be more cross-industry collaboration. And in particular to ensure that estate agents – who may be the first point of contact for fraudsters – are trained and know what to look for. We would also welcome more secure communication systems between conveyancers and home movers to reduce the number of opportunities that fraudsters currently have.
Consumers – as potential victims of fraud – will find taking legal action to recover their losses expensive and time-consuming. Prevention – taking the necessary steps from stopping the fraud in the first place – may turn out to be the best cure.”
