Law Society warning to homeowners not to waste money on so-called ‘Fraud Prevention Services’
Homeowners worried about rising levels of property fraud have been advised by the Law Society of England & Wales against paying out to join schemes aimed at helping them to avoid becoming victims of the crime. These schemes have become fashionable recently with some companies vigorously trying to convince homeowners that the schemes provide protection. This is far from the case and most of these schemes are little more than an excuse to charge homeowners money for ‘nothing very much’.
Officials from the Law Society are urging homeowners to steer clear of any schemes and insurance policies that involve paying out cash in order to get protection from property related fraud.
The Law Society, the solicitors’ regulatory body, warned last week that such schemes did not offer significant protection. The Law Society said: ‘These particular insurance products create no barrier between home owners and fraudsters. There are much more effective measures home owners can take to guard against fraud. These kinds of adverts are claiming that this kind of insurance is necessary, especially if a home does not have a mortgage. With many non mortgaged properties likely to be owned by elderly home owners, this type of sales tactic is particularly concerning.’
The Land Registry said it had also introduced measures to counteract the crime.
Fraudsters targeted property worth £20m in 2010. The Land Registry paid £4.9m compensation to victims of property fraud last year, up from £3.9m two years previously. Title deeds to property are now available online, allowing criminals to access mortgage account details and signatures. Fraudsters have tricked banks and solicitors into transferring property after using the Land Registry website to create a fake identity, impersonate the owner and have all correspondence sent to a new address. This allows criminals to take out a mortgage and even sell the property without the real owner’s knowledge.
If you own property which is not occupied we strongly advise you to maintain control over that property and ensure that you visit the premises regularly. Fraudsters prefer to target properties that appear to be vacant or are occupied by the elderly.
