# How banks can help tackle property fraud Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-28 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: How Banks Can Protect Consumers from Rising Property Fraud Meta Description: Learn how banks can educate consumers to prevent property fraud, from deposit hijacking to fraudulent landlord practices. Stay informed and safeguard your home. URL: https://financedigest.com/how-banks-can-help-tackle-property-fraudhtml _By **Jamie Melling,** CEO,_ [_Smartnumbers_](https://smartnumbers.com/) Every year, fraudsters attempt to take hundreds of millions of pounds from consumers using sophisticated property scams, from fraudulent Land Registry changes to deceitful landlord practices. In fact, last year the [Land Registry paid out £5.3 million in compensation](https://thenegotiator.co.uk/land-registry-pays-out-5-3-million-in-fraud-and-error-compensation/) for fraud and inaccuracies within its register. Recent figures also show that property fraud has [doubled over the past 10 years](https://thenegotiator.co.uk/land-registry-pays-out-5-3-million-in-fraud-and-error-compensation/), with many victims left penniless and homeless from criminal attempts at selling homes that didn’t belong to them. So, with an increasing number of people impacted by property fraud, what can banks do to help protect them? **Property fraud: a complex threat** With a myriad of tricks up fraudsters’ sleeves, it’s [important for organisations and consumers](https://www.financedigest.com/u-s-inflation-outlook-brightens-as-import-prices-fall-consumer-sentiment-rises.html "U.S. inflation outlook brightens as import prices fall, consumer sentiment rises") to know what kind of attacks they might face. One of the most common types of [property scams sees fraudsters act as buyers](https://www.financedigest.com/uk-buyers-lead-interest-in-megacity-istanbul-accounting-for-21-51-of-all-property-enquiries.html "UK BUYERS LEAD INTEREST IN ‘MEGACITY’ ISTANBUL, ACCOUNTING FOR 21.51% OF ALL PROPERTY ENQUIRIES") or sellers. When they act as a buyer, they’ll go along with the sale, then pull out just before it’s legally agreed. Unfortunately, the buying process gives scammers [access to official documentation about the property enabling](https://www.financedigest.com/the-open-banking-revolution-enabling-accessible-and-inclusive-finance.html "The open banking revolution – enabling accessible and inclusive finance") them to create a fraudulent version to dupe the Land Registry and transfer ownership to themselves. When they act as the seller, they’ll try to sell the property quickly, often at below market [rate to speed up the purchase](https://www.financedigest.com/how-to-increase-repeat-purchase-rates-in-ecommerce.html "How to increase repeat purchase rates in eCommerce"), before running off with the cash. Deposit hijacking has also been on the rise. This scam happens during the conveyancing process when fraudsters hack into the solicitor’s network, then read through emails to identify a target. When the [property deal is close to final](https://www.financedigest.com/10-year-david-goliath-crusade-finally-sees-justice-for-off-plan-spanish-property-buyers.html "10 year ‘David & Goliath’ crusade finally sees justice for off-plan Spanish property buyers"), they’ll send a fake email with new payment details enclosed and request the deposit is transferred asap. As most buyers are ready to transfer their funds, and the [amount requested is the amount they expect](https://www.financedigest.com/synechron-continues-to-shine-with-expected-record-revenue-growth-of-28-amounting-to-405m-in-the-financial-year-2016-17.html "Synechron continues to shine with expected record revenue growth of 28% amounting to 5m in the financial year 2016-17") to pay, they often won’t think to question it. But as soon as the [money has been transferred](https://www.financedigest.com/millennials-and-their-money-predictions-for-the-great-wealth-transfer.html "Millennials and their Money: Predictions for the Great Wealth Transfer"), the fraudster shuts down the account and moves it to a different account to hide their tracks. The consumer has then lost their deposit. Pretending to be a [landlord or a rental](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") agent is another popular tactic. Many people renting in the UK are used to handling most of the process online, with only in-person visits happening when they visit the property. Fraudsters take advantage of this by posing as agents to pressurise [renters into signing and transferring over a deposit](https://www.financedigest.com/zero-deposit-renting-really-mean-renters.html "What does zero deposit renting really mean for renters?  "). Once they receive the money, they vanish. There’s no doubt this [rising threat should be front of mind for consumers and banks](https://www.financedigest.com/in-a-rising-market-are-banking-outsourcers-pulling-their-weight.html "In a rising market, are banking outsourcers pulling their weight?") alike. **Combine** [education and technology](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector") One of the [biggest ways banks](https://www.financedigest.com/open-data-represents-the-biggest-challenge-to-banks-in-a-generation.html "Open data represents the biggest challenge to banks in a generation") can help stop consumers from being duped by property fraud is education and awareness. The more information on [fraud risks](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") and tactics commonly used by criminals we arm the public with, the more difficult it will be for fraudsters to manipulate victims. This should include advice such as never disclosing security details, and always double-checking [contact details for the recipient bank](https://www.financedigest.com/uk-watchdog-contacts-banks-following-huge-withdrawal-of-mortgage-deals-ft.html "UK watchdog contacts banks following huge withdrawal of mortgage deals -FT"). [Consumers also need](https://www.financedigest.com/money-orders-vs-checks-what-you-need-to-know-as-a-consumer.html "Money Orders vs Checks: What You Need to Know as a Consumer") to be encouraged to sense-check emails, texts or phone calls before responding to their requests. Another step banks must [consider](https://www.financedigest.com/5-things-to-consider-when-choosing-a-challenger-bank.html "5 Things to Consider When Choosing a Challenger Bank") is preventing fraudsters from gathering information by calling victims’ banks — in other words, put a stop to contact centre reconnaissance. Leveraging Interactive Voice Response (IVR) systems or even online chatbots, fraudsters are able to harvest sensitive information that can be used to socially engineer [customer service](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") staff to access account details. Smart technology that can analyse real-time telephony data, can [address these vulnerabilities by allowing banks](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document") to identify high risk calls entering the contact centre before the call is answered. By analysing more than 200 features derived from carrier-level call signalling data, banks can identify suspicious callers, prompting contact centre agents to ask more [security questions or passing the call to fraud operations](https://www.financedigest.com/transport-operator-go-ahead-flags-cyber-security-breach.html "Transport operator Go-Ahead flags cyber security breach") teams. Also, scam warnings and interventions injected into online [banking and mobile applications help create moments of reflection for customers encouraging them to think twice before transferring large sums of money](https://www.financedigest.com/marketmind-banks-are-leaking-money.html "Marketmind: Banks are leaking money"). With property fraud on the rise, [banks must consider updating their security strategies to ensure their customers’ accounts](https://www.financedigest.com/are-banks-ready-for-the-new-accountability-regime-in-2016.html "ARE BANKS READY FOR THE NEW ACCOUNTABILITY REGIME IN 2016?") are protected. **You can make a difference** [Banking contact centres can be centre stage in fraudsters’ complex attempts to obtain victims’ funds](https://www.financedigest.com/bank-funding-for-renewables-stagnates-vs-oil-and-gas-report.html "Bank funding for renewables stagnates vs oil and gas – report"). That’s why banks, by tightening contact centre security, can play a critical role in [protecting individuals from property fraud](https://www.financedigest.com/protect-your-organisation-from-fraud.html "Protect your organisation from fraud"). Along with awareness campaigns for staff as well as the public, there are many tools and [technologies available](https://www.financedigest.com/advertys-multi-patented-and-industry-leading-in-game-viewability-technology-brainimpression-now-available-within-oracle-moat.html "Adverty’s Multi-patented and Industry-leading In-game Viewability Technology BrainImpression™ Now Available Within Oracle Moat") to address vulnerabilities in the contact centre and other channels. [Bank customer](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking") service teams and fraud teams must work together to implement the right security tactics to make the fraudsters’ job as hard as possible, and safeguard customers’ funds. As fraudsters get smarter and more sophisticated, fraudulent attempts in [property and other industries will only become](https://www.financedigest.com/property-letting-could-become-a-legal-minefield.html "PROPERTY LETTING COULD BECOME A LEGAL MINEFIELD") fiercer. But by educating call centre staff and consumers, and adopting the right tactics and technologies, [banks can truly make a difference in thwarting fraud](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") attempts and protecting their customers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---