There are many different types of real estate fraud, but the two that consumers should be aware of are mortgage fraud and title fraud.

Mortgage fraud occurs when an individual intentionally provides inaccurate, fraudulent or incomplete information to a lender in order to secure a mortgage that they might not otherwise be granted. This could include anything from an individual claiming to have a higher income than they actually have to providing falsified proof of identification or a falsified appraisal of the property.

Title fraud occurs when a fraudster assumes the identity of an individual homeowner and then uses that false identity to pose as the homeowner. They could then assume the title on the home, sell the property or obtain a mortgage on that property or other properties in the homeowner’s name.

Real estate fraud is a crime that the banking industry, police, governments and other organizations involved in real estate transactions take very seriously.

What is my bank doing to protect me from real estate fraud?

The banks work constantly to protect you from fraud. All banks have fraud and security teams working around the clock to ensure that security measures are constantly being enhanced and technology upgraded to help prevent real estate fraud. The banking sector also works collaboratively with members of law enforcement on investigations to help catch criminals and protect Canadians.

How do I protect myself from becoming a victim of mortgage fraud?

Protect your personal information from identity thieves:

• Do not give out personal information on the phone, through email or text unless you have initiated the contact or know with whom you're dealing.
• Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time.
• Guard your mail. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after delivery. Ensure mail is forwarded or re-routed if you move or change your mailing address.
• Minimize the identification information and number of cards you carry.
• Keep items with personal information in a safe place. An identity thief will pick through your garbage or recycling bins. Be sure to tear or shred receipts, copies of credit applications, insurance forms, physician statements and credit offers you get in the mail.
• Don't carry your Social Insurance Number (SIN) card; leave it in a secure place. And only give out your SIN when absolutely necessary. Ask to use other types of identification when possible.
• Check your credit report regularly to ensure there are no discrepancies
• Reviewing your credit report can help you find out if someone has opened unauthorized financial accounts in your name. There are two credit reporting agencies in Canada: Equifax Canada and TransUnion Canada. You can request free copies of your credit report from credit reporting agencies by mail. Online versions of reports are also available for a fee.
• You can also conduct a property search at your province land registry office to ensure that the title to your home is in your name.
• You can also consider purchasing title insurance.