Toronto homeowner discovers that their home was sold fraudulently

BY JAY BRIJPAUL

Imagine going away on a trip and when you return, you discover that an imposter sold your home and the new buyers have already taken possession. You’ve lost your home and all your personal belongings. This happened to a homeowner in Etobicoke.

In January 2022, two individuals, acted as the homeowners and hired a realtor to sell the property. Months later, the real owner returned. The fraudsters used fake identification and pretended to be the homeowners.

A home is something personal. In many instances, it is full of lifelong memories. For many, it is their entire life savings. Selling a home is complicated and involves many steps. So how exactly did the fraudsters pull it off?

When selling a home, a realtor cross references photo identification, such as a driver license or passport, with the owner’s name from the land registry. If these documents are fake, it would be difficult for a realtor to know. Identity theft is becoming more prevalent since most of our information is online. In 2021, there were 1.4 million reports of identity theft. What can homeowners do to protect themselves?

Fraudsters are looking for easy targets. In the above case, the imposters knew that the homeowner was away. It’s easy for an imposter to break in and search for information. Many snow birds leave their home unattended during their absence. If you are going away, have a close friend, family member or a house sitter to keep watch. A reputable security alarm company is worth the money.

Fraudsters look at your social media profile.  When we are on a family vacation for example, we share our experiences with our social media friends. A fraudster can know when we are away. For many of us, it’s an open book for a fraudster to read. Monitor your social media profile and when you are away, don’t expose it.

Fraudsters target mortgage free homes. When a property has a mortgage, it is registered on the title (or history) of the property. It is more difficult to transfer the property to a different owner because the lender must give consent. Lenders have sophisticated security systems set in place to detect fraud. For fraudsters, it’s more hoops to jump. When a property is mortgage free, it’s a prime target. If you are mortgage free, open a home equity line of credit. When this happens, the lender is registered on the title of the property. You can ask the lender to keep it locked. If you need to use it, then you and the lender can unlock it together.

Fraudsters love the elderly. Imposters tend to target elders who are living alone in their home. They pretend to be a friend and spend time building a relationship. As the relationship grows, the trust factor for the elder grows. In many instances, this has resulted in marriage. The fraudster becomes a joint owner of the property. If you are an elder, then consider adding your loved ones, such as your children, on the title of the home. Children should keep a close watch on their elderly parents and assist them in their financial dealings. Important documents such as SIN, passport and banking information should be placed in a safe place.

Freeze your credit. It’s free and easy to do. To freeze your credit, you must contact each of the two credit bureaus: Equifax and TransUnion. The agency will provide you with a PIN you can use when needed. This does not affect your credit score.

Use two-factor authentication. Hackers are using sophisticated systems to gain access to your computers and accounts. Two-factor authentication (2FA) gives another level of security. For example, if someone signs into an account with a password, you will receive a text message with a code you need to enter to gain access.

Selling someone’s home without their consent is unusual. The fraudsters must first steal the owner’s identity and then access the property for showings. Later, they would be screened by a lawyer. Their lawyer would pay off any liens and mortgages on their behalf. Finally, after the sale, their lawyer would either deposit the funds into the owner’s account or prepare a draft in the owner’s name. Since the imposters pretended to be the owner, it is likely that they may have opened an account in the owner’s name. They would need to withdraw all the funds from that account. The point is, many things must align to pull this off.

With easy access to information, cunning hackers and scam artists, identity theft is on the rise. Many people are buying identity theft protection services. These help to catch potential fraud early but they cannot protect you from fraudsters. The best protection is to safeguard yourself. Be vigilant.