Mortgage fraud

Mortgage fraud usually involves individual(s) or organised criminal gangs and at least one corrupt associate, such as an accountant, solicitor or surveyor.

Mortgage fraud can include:

• over-valuing properties
• overstating a salary or income
• hijacking genuine conveyancing processes
• taking out mortgages in the name of unsuspecting individuals or those who are deceased after identity theft
• taking out a number of mortgages with different lenders on one address by manipulating Land Registry data
• changing title deeds without an owner’s knowledge to allow the sale of a property

Owners who are concerned their property might be subject to a fraudulent sale or mortgage can quickly alert Land Registry and speak to specially trained staff for practical guidance about what to do next by calling their Property Fraud Line on 0300 006 7030. The line is open from 8.30am to 5pm Monday to Friday.

It’s important to recognise that a fraud can come from anywhere, including:

• staff members
• customers
• suppliers
• third parties, unconnected to the business

We can’t provide a single solution to prevent all business fraud, but the information here will help you identify the most common types and take action to protect yourself, your staff and your business. Some of the areas covered in this advice include:

1: Being sceptical

Have processes in place to properly audit and scrutinise all transactions to protect your organisation against fraud.

2: Know your business

Have a thorough understanding of your business so you know how it work, and also when something isn’t working.

3: Knowing your customers and suppliers

When you understand who you do business with you can spot any business request or transaction that looks wrong for that customer or supplier and may be fraudulent.

Conduct due diligence using a risk-based approach, such as checking the customer or supplier details you have on file, as well as online searches.

4. Identify areas where your business may be vulnerable to fraud and develop strategies to deal with them

Imagine how a fraudster might target your business, both internally and externally, and test the systems you already use to reduce risk. Think about the right fraud prevention and detection strategy for your business: it should detail controls and procedures.

Due diligence: you should consider due diligence on applications for credit or finance agreements to prevent losing money to fraud. Credit indices or the protective register available to CIFAS members are useful tools in validating applications www.cifas.org

For more information, please visit: Business fraud and how to prevent it | City of London Police

If you have made a payment: Inform your bank as soon as possible, they can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity.

You could be targeted again: Fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.