Homeowners should avoid property fraud protection schemes
With property related fraud on the increase it is no surprise that so many worried homeowners are quick to sign up to schemes that offer to protect them from this type of fraud, even if this protection comes at a price.
However, one regulatory body has recently warned that homeowners could be wasting money with such schemes.
A warning has been issued by the Law Society over the various adverts and marketing strategies being used by some insurance companies and firms trying to take advantage of homeowners’ concerns about property fraud.
The regulator for solicitors said that these schemes rarely offer any real protection against this type of fraud, which is on the rise. This means that many homeowners will be wasting their money by paying for protection that is not effective.
One official from the Law Society stated: ‘These particular insurance products create no barrier between home owners and fraudsters. There are much more effective measures home owners can take to guard against fraud.
These kinds of adverts are claiming that this kind of insurance is necessary, especially if a home does not have a mortgage. With many non mortgaged properties likely to be owned by elderly home owners, this type of sales tactic is particularly concerning.’
The Land Registry has said that it is taking action to try and combat property crime but many criminals are using the site to get access to title deeds to properties, which enables them to effectively commit fraud without the homeowners even realising what it going on until it is too late.
By accessing these title deeds fraudsters are able to get the mortgage account details and signatures of the homeowners, which they then use to trick solicitors and banks into transferring property. They are then able to take out a mortgage or even sell the property.
Last year fraudsters targeted property worth around £20 million, and the Land Registry had to pay out close to £5 million in compensation to victims of fraud.
Two years ago the amount paid out in compensation was under £4 million, which is a reflection of the increase seen in this type of fraud over the past couple of years.
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Tags: first time buyers, mortgage payments, property fraud, property scheme
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