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Innocent homeowners and buyers are under attack from thieves looking to steal equity from Canadian homes. For Daniela DeTommaso, President of FCT, protecting consumers means detecting title fraud, and preventing it before it ever happens. That’s no small task: in an increasingly digital real estate market, fraud prevention takes expertise as well as the latest in ID security tech.
Title fraud has become more sophisticated
Title fraud, where someone impersonates a property owner to sell or mortgage that property, has risen dramatically in recent years. Fraudulent activity has also become much harder to detect, thanks to advances in technology that criminals have turned to their advantage.
The introduction of generative AI has made it much easier for fraudsters to impersonate property owners. They can alter their voices for phone conversations, and even use deepfake technology in video calls to change their appearance in real time.
But possibly the biggest gift tech has handed fraudsters is the ability to create more convincing fake ID cards, even including some security features.
“We’ve never seen the sophistication in the duplication of these documents that we’re seeing as of late,” Daniela said. “[Fraudsters are] falsifying identification, but to the human eye, you would never know that they’re not the person they’re pretending to be.”
Fraudsters still rely on the human element
Fraud always comes down to telling a convincing lie—all the sophisticated technology is just there to make that lie harder to catch. Fraudsters can gain access to information like a property owner’s date of birth, bank account number and other private data.
Combined with sophisticated forged ID documents, this AI-powered identity theft and fraud can be impossible to spot, even when sitting across the table from it. That puts you, as an experienced legal professional, in the uncomfortable position of having to look at each client who comes to you as a potential fraudster.
Daniela urged real estate professionals to trust their instincts when dealing with customers. “It’s really important that you follow your gut. If you don’t know your customer, make sure that [you’re] asking for additional information, asking more questions.”
Asking clients follow-up questions about themselves and the property is a fraud prevention best practice. Even friendly questions can expose inconsistencies in a fraudster’s story, if their answers don’t match the information you have, or details they provided.
Many fraudsters count on professionals not wanting to seem suspicious of a client, or not feeling comfortable asking personal questions. In general, fraudsters usually prefer to keep the professionals involved in the deal at arm’s length when they can. New practices, like remote transactions, have made this much easier.
Verify ID on every transaction, even in person
One myth about ID verification software is that it’s a tool specifically for supporting remote transactions. While it’s true that they’re essential for virtual closings, they’re just as important for transactions completed in your office.
Client ID Verification is a tool that uses your client’s identity documents—a driver’s license, even a passport—plus a liveliness check to assist in confirming their identity, then creates a verified ID token for that person. Once your client has been verified, their ID token is stored in a digital wallet on their smartphone for up to five years, and they’re free to delete it from the device at any time.
“We all have a role to play in [fraud] prevention,” said Daniela. Use Client ID Verification from FCT on every transaction to safeguard your business, your clients and their personal data.
Services by First Canadian Title Company Limited. The services company does not provide insurance products. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
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