With an increasing number of identity theft cases and a growing concern over protecting sensitive data, title fraud takes on new problems and the need for more solutions. While a title company, like US Patriot Title in Florida, conducts a title search during the closing process to look into any current or past documented rights or liens against the property, there is a concern over future title issues.
These problems consist of scammers either stealing a person’s identity and taking out mortgages to buy property in the person’s name or selling property that is owned by another.
Florida Cases:
There have been a few cases in Florida of scammers finding enough sensitive data about a property and homeowner to put the owned property up for sale or rent without the knowledge of the homeowner. Usually, at some point during the process, the fraud is detected; however, many parties involved lose money.
A Jacksonville woman is out thousands of dollars after someone tried to rent her a home owned by someone else, according to an Action News Jax news report. The report says the woman was looking for rental properties in Jacksonville and found a good deal on Craigslist. The report says the woman said the supposed landlord wouldn’t give her an in-person tour because of the pandemic, but offered her a virtual tour and the code to the lockbox so she could tour the house herself. The woman told Action News Jax she wired thousands of dollars to the supposed landlord before discovering it was a scam.
The woman is one of many in Jacksonville who have lost money in rental scams. St. Johns County is also seeing an uptick in these scams. Even the Better Business Bureau (BBB) is warning renters, homeowners, and Realtors nationwide to use caution — especially during the COVID-19 pandemic when in-person contact is less common. The BBB said, “More than 5 million people lost money to rental scams and 43% of online shoppers encountered a bogus listing, according to a recent survey by Apartment List.” These types of scams aren’t limited to renting property, it also includes the buying and selling of property.
To report a scam, visit BBB.org to file a complaint or contact the Federal Trade Commission at ftc.gov/complaint. You can also file a complaint with the Internet Crime Complaint Center.
Title Fraud Cases:
The BBB is also following an uptick in title fraud. The BBB explains that “Home title fraud happens when someone obtains the title to your property and changes ownership from your information to theirs.” The BBB goes on to say that, “The scary part is, you may not even realize it until it’s too late.”
Advances in technology have made it easier for scammers to hack in and steal sensitive information including a home’s title. In vacation states like Florida, it’s easier to get away with this type of fraud because scammers can target second homes or vacation homes – meaning the homeowner may not notice a change right away because they aren’t living there full time.
The BBB says the scammer searches and finds enough information about the homeowner to use the homeowner’s identity and assume the role of the property owner or claim to represent (the homeowner.)” From there, the scammer can “file the necessary paperwork to transfer ownership of (the) property to themselves using forged signatures and fraudulent identification,” the BBB said.
Identity theft is difficult to bounce back from and victims will need help from many organizations to get things cleared up.
US Patriot Title uses secure platforms, Qualia and Pavaso, to conduct all their in-person closing and eClosing communication. This means all secure data is stored privately and securely with-in these platforms.
Enhanced Title Insurance
Title companies in Florida and across the country search through all available public records to ensure there are no claims against a title prior to a title exchange. Title insurance covers any possible missed public records showing a claim, lien, etc. against the title. This covers only documents filed at the time of the title search, meaning any future claims against the title are not covered under this insurance. Most mortgage lenders will require lender’s title insurance for its protection, but keep in mind that this policy only covers the lender’s interest.
There are two main types of title insurance policies. One to protect the lender’s interest and one to protect the new homeowner’s right to the title of the home. Both insurance policies only protect what is documented at the time of the sale, not future issues with the title such as title fraud.
An enhanced owner’s title insurance plan would need to be purchased for protection on future title issues. A homeowner would want to take out an enhanced owner’s title insurance policy that would insure against forgery or impersonation after the closing of the home. An enhanced owner’s title insurance policy is more expensive and may not be worth it depending on the homeowner’s needs – but it is available for those who feel they need additional protection.
Other ways to protect yourself
Both the FBI and the BBB suggest that people should stay vigilant about protecting their identity. They urge everyone to use caution when putting personal information online or sending personal information through non-secure portals like email. They also recommend people check in on their credit and keep an eye on what is being taken out in their name. Individuals can keep track of this through credit bureaus.
USA.gov says, “On AnnualCreditReport.com, you are entitled to a free credit report from each of the three credit reporting agencies (Equifax, Experian, and TransUnion) every week, through April 2021. You can request all three reports at once, or request them one at a time. Learn about other situations when you can request a free credit report.”
