How to prevent identity theft of your property

Did you know your home could be sold without your knowledge? As scary as it sounds, property fraud is an increasing problem that could see you losing huge amounts of money if you’re not careful. Our guide looks at the tactics fraudsters use and what you can do to prevent becoming a victim.

Could your home be hijacked?

House hijacking refers to a property sale without the owner’s knowledge. It happens when a fraudster steals the identity of the owner and then tries to sell or remortgage the property. Sometimes, the property sale doesn’t even go through fully but the scammer walks away with the deposit money and the buyer is left without a property - or their down-payment.

How do the scammers work?

In most cases, scammers target properties that don’t have a mortgage, are rented, where the owner lives abroad or are empty. Criminals are also drawn to properties that are not registered with the Land Registry. In essence, homes where there is little day-to-day involvement from the owner or a lender are prime targets.

Property identity thefts are as simple as they sound. For example, a criminal will change their name by deed poll to match that of the property’s owner, then obtain new ID documents in that name. They use their new identity to approach estate agents or to sell the property privately. There is no process in place that alerts people if someone changes their name to match someone else’s, so this action often goes unnoticed by property owners.

Property theft protection tips

• Make sure your property is registered with the Land Registry: it should be if it was purchased or mortgaged after 1990.
• Make sure the address for service on the title deeds is up to date: this is the address where third parties can write to in order to get in touch with the owner.
• Apply for a property alert from the Land Registry: this will warn you if someone has applied to change the ownership of the property or refinance it. Although it cannot stop a crime from happening, it can give you an early warning so you can take action.
• Put a restriction on the title: this stops the Land Registry from registering a sale or mortgage on the property unless a solicitor has certified it was done by the seller.
• Keep your identity documents safe: if they fall into the wrong hands, documents can be used by fraudsters posing as you.
• Choose your conveyancing solicitor carefully: you can check a solicitor’s authenticity with the Law Society or the Council for Licensed Conveyancers. It’s also wise to run a check on the solicitor representing the other party too.
• Look out for suspicious legal correspondence: deposit redirection fraud is when criminals use malware to hack computers and intercept a transaction when a deposit is requested. Be very suspicious if your solicitor requests monies are paid to a different bank account at the last minute or if they’re sending/requesting bank account details via email – this may be a criminal posing as your solicitor. Always have anti-virus/malware software on your computer and verbally check the bank account details with your solicitor before any money is transferred.

We can help

Move Places is on hand to help you sell your property with confidence, so get in touch to start your sale. Our highly regulated processes ensure the identities of buyers and sellers are properly verified, with benchmarks set through our Trading Standards-approved code of practice and our membership to The Property Ombudsman.

We also recommend using RMNJ Solicitors to ensure your sale is watertight. RMNJ Solicitors are members of the Law Society Conveyancing Quality Scheme and its practice is accredited to Law Society Lexcel Practice management standards.