Be aware of property fraudsters!
03/02/2022
Despite sophisticated levels of security, property fraudsters are as big an issue ever. The average property fraud scam is £100,000 and it’s vital that you do all you can to avoid being a victim.
This short guide should help you understand the different types of property fraud and work out how you can best avoid them.
Fake buyers/sellers
The most common and obvious type of property fraud is when a person pretends to be a buyer or a seller of a property. Due to the increased amount of online transfers of money, it’s become far easier to commit this type of fraud.When acting as a buyer, fraudsters will withdraw from a previously accepted offer before the legals have been completed. They will then gain information which allows them to transfer the property to themselves by creating false documentation.
When acting as sellers, scammers will pretend to be the property owner. Information on most properties is available at the Land Registry website, so it’s quite easy to obtain key data. Fraudsters will often try to offload the property quickly at a cheaper rate so they can make a quick return before they’re found out – all while using someone else’s name!
Fake landlords
Due to Covid-19, more transactions are carried out online, including submitting documentations and even house viewings. Because of this, fraudsters present brilliant properties online usually with fake photos and details. They can lure interested parties into a quick deposit before disappearing.Fake solicitors
An increasingly common issue that involves fraudsters pretending to be solicitors, either through hacking or careful manipulation of email addresses. They then ask their clients to transfer money to them. This usually happens on a weekend to pressure clients into paying without proper verification. It’s thought that this ‘home hijacking’ (also known as ‘Friday afternoon fraud’) is the most common legal-related cybercrime.This can also be achieved through fake mail seemingly from your conveyancer, complete with normal looking letterheads, asking you to pay an amount into a specified account.
What to do
There are a number of things you can do to avoid being the victim of a scam. Here are our top five tips:\u2028\u20281. Avoid properties that you see online where you can’t see the property in person or if any appointment is constantly being changed or delayed.
2. Don’t give in to demanding letters, phone calls or e-mails where you feel forced into quick decisions.
3. Don’t transfer money anywhere without verifying bank details with your conveyancer. Be extra careful if the requests come on a Friday afternoon.
4. If you’re a tenant, only pay a deposit into a government-sanctioned deposit scheme.
5. Only work with lenders and brokers who have been approved by the Financial Conduct Authority (FCA).
For advice, you can contact our team at Jill Moore Select Properties