The wide availability of home owner data empowers criminals and enables title fraud warns the founder of a new service designed to tackle the issue of property being sold from under the noses of the home owner.
John Daw, founder of Title Guardian points to the case of Reverend Mike Hall, whose house was stolen in 2021. In the case Rev Hall was working away when his neighbours contacted him to say someone was in his house. When Hall returned to the property he found the locks had been changed and a builder renovating the interior. A Land Registry search confirmed the new owner had bought the terraced house in earlier in the year, from the fraudster impersonating the home owner.
Daws says the case highlights how the availability of homeowners’ data on HM Land Registry can be exploited to steal ownership of property, impersonating the homeowner, transferring the property’s ownership title and then selling it, without the owner’s knowledge.
“The availability of homeowner data on the government’s open register naturally creates risks, as that data can be sold to anyone, including those with criminal intent. Government organisations like Companies House and the DVLA can also unintentionally assist frauds, where checks on activities are not robust. So, after a successful beta phase, we’re pleased we can now bring this important technology to market, to provide much needed protection against these threats”.
Title Guardian monitors digital sources, such as property portals and government databases, including HM Land Registry and Companies House, where an owner’s details appear and where property fraud commences. If suspicious activity is detected, the homeowner receives instant alerts via SMS, email and app notification so any potential fraud threat can be stopped.
Says John Daws.
Acknowledging HM Land Registry’s property alert service, which sends an email to a property owner if someone applies to change the register of a property, Daws says that in some cases the fraud has already been successfully executed and it’s too late by the time the alert reaches them.
Stuart Forsdike, founder of PCS Legal and advisor to Title Guardian adds
“Title Guardian provides a new-level of protection for property owners. The fraud threat to homeowners is significant and the consequences of title fraud are of course severe. We’ve seen numerous cases of homeowners’ addresses being used to set up fraudulent companies at Companies House, which can be time-consuming and costly to correct. So, to now have a solution that addresses these risks is a real positive.”
“At PCS Legal, we’ve been an early adopter and the technology has proved its worth quickly – two clients have been alerted to potential fraud threats already. It helps reduce our own risks of potential claims relating to frauds and, most importantly, adds extra value to our clients. It’s easy to set up and the Title Guardian team have supported a seamless rollout to many clients. I think every law firm needs to be drawing their clients’ attention to the potential risks of property fraud and recommending they take action to protect themselves,”
Forsdike concludes.
