As assets grow, you will think that real estate has a unique resistance to theft. After all, it’s not cash or vehicles; no one can escape. But real estate able Make use of economic benefits. That’s why Canadians have to fight crimes like mortgage fraud and title fraud. This is how they work and how to protect themselves.
Canadian mortgage fraud
The most common form of mortgage fraud in Canada is so-called first-party fraud: mortgage applicants distort aspects of financial affairs when applying for an application – for example, by claiming that income is higher than what they actually earn or failing to disclose debt.
“They are not pretending to be someone else,” said Carl Davies, head of fraud and identity at Equifax Canada. The target of first-party mortgage fraud is lenders, not consumers. Nevertheless, Canadians are affected as the cost of first-party fraud is passed on to them through higher financing costs.
Canadian consumers need to be wary of and protect themselves from third-party mortgages and ownership fraud. It’s a time when a fraudster pretends to be you, applying for a loan in your name and mortgage your home. They can also assume your home title so that the home can be remortred or sold, even if you don’t know.
This crime now and in the future can have a serious impact on your finances. You may face a lender’s claim service or repayment of borrowed funds. The impact on your financial identity can damage your credit score and affect your ability to obtain credit. Cleaning up fraud consequences with financial institutions and law enforcement requires time and effort. It may take months or years to get your financial back on track.
How mortgage fraud happens
Protecting yourself from mortgage and property fraud starts with understanding how it usually unfolds.
“Identity theft is often a pioneer in this fraud,” Davis said, explaining why mortgages have become a bigger concern in this digital age. “People’s ability to commit identity theft is easier than ever before.”
The emergence of Generative AI has enabled fraudsters to convincingly forge or create fraudulent documents, and even imitate owners with Deepfake Audio and videos. And, because mortgages represent one of the biggest money we have ever seen, it’s a leading way for criminals to profit from identity theft.
