| • |
Fraud is fast becoming the crime of the 21st century, with identity theft at the forefront of a whole range of major crimes – from people smuggling and drug trafficking to money laundering and mortgage and real estate title fraud. |
| • |
Although real estate title fraud is far less frequent than other forms of fraud arising from identity theft, it is a violation that can have devastating and long lasting effects on its victims. One of the great injustices about this type of fraud is that perpetrators are rarely caught. |
| • |
Real estate title fraud can take several forms, and it often starts with identity theft. A basic scam can be simple: a fraudster targets a house, forges a transfer deed using a stolen identity, registers title to the property in his or her own name, forges a discharge of the existing mortgage and borrows against the clear title. |
| • |
According to the RCMP, one in six Canadians will be victims of some sort of identity theft in 2008. This will result in losses estimated to be close to $3 billion. In the U.S., the FBI estimates losses there will reach as high as $30 billion. |
| • |
According to a recent Ipsos Reid survey, nine per cent of Canadians – or three million people - have fallen victim to identity theft at one point in their lives. |
| • |
First Canadian Title estimates the average case of real estate title fraud to be in the range of $300,000. In comparison, the RCMP pegs the average credit card fraud case in Canada to be around $1,200. |
| • |
In North America, nearly 30 per cent of fraud victims are seniors. |
| • |
First Canadian Title’s underwriting department is trained and experienced at recognizing the “red flags” of suspicious transactions. In 2008 to date, this vigilance has prevented over $16 million nationally in potential claims related to fraud. |
| • |
First Canadian Title believes that prevention remains the best protection against fraud, including real estate title fraud and identity theft. Real estate title fraud can happen to anyone. It’s up to you to get informed and protect yourself. |
