Property fraud occurs when a criminal steals someone’s identity and then claims that individual’s property as their own. Once the crime is committed, it can take years for the rightful owner to clear things up.
To help combat this, the Sangamon County Recorder’s Office offers a free mortgage fraud and identity theft alert service to property owners. The service notifies you if a document with your name is submitted to the Recorder’s Office. While the alerts won’t stop fraud, they serve as an early warning system, helping you quickly determine if you’ve become a victim.
Dana Lyons, agency manager of The Title Center, notes that while this alert system has existed for about 15 years, it’s only recently gained public attention due to increasing reports of local property fraud. “Until there’s a problem, no one pays attention,” she says. Unfortunately, property fraud is now a real issue in Central Illinois.
Dana also says some companies charge for similar fraud alert services, but the county offers the same service for free. She warns that people sometimes mistakenly believe these paid services provide insurance coverage, which they do not.
Sign Up for Free County Alerts
To sign up for the free Property Fraud Alert through the Fraud Guard Notification System, visit the Sangamon County Recorder’s website at https://www.sangamoncountyrecorder.com/. There’s a link on the homepage to register, and an option to fill out a form if you prefer not to sign up online. Be sure to read the Q&A which gives helpful tips on listing names and including multiple property owners, if necessary.
Many counties nationwide offer similar services. To check if your county is on the list, visit www.propertyfraudalert.com.
Once registered, you’ll receive notifications if any documents with your name are submitted to the Recorder’s Office. This early warning can help you act swiftly, allowing you to challenge fraudulent filings before they escalate. Diana Eldridge, marketing officer for The Title Center, emphasizes, “Although the alert comes after the fraud has occurred, time is of the essence. The sooner law enforcement gets involved, the better.”
Recent Examples of Property Fraud
Dana shares recent instances of property fraud in Sangamon County. In Rochester, Illinois, someone attempted to sell a vacant lot they didn’t own. “Four or five REALTORS® thought they had the listing,” she says. The fraudster approached several REALTORS® in hopes of closing the sale quickly. In another case, a REALTOR® was being tested by fraudsters to see how fast they could list a property. Fortunately, the REALTORS® did their due diligence in both instances, and the fraud was prevented.
In these cases, the crime began with the perpetrator stealing someone’s identity. Once they had this information, they targeted properties. Often, fraudsters steal funds by intercepting down payments, typically done through electronic transfers. Criminals may intercept communication and provide false payment instructions, or, increasingly, they steal checks from mailboxes. As a result, Dana explains that her organization has changed how it handles communications. She recommends always confirming money transfer instructions with your bank or hand-delivering checks to avoid these risks.
Adapting to Combat Fraud
Diane has been offering tailored training to REALTORS® to help them recognize and manage the risks of property fraud. She explains that many real estate transactions today don’t require face-to-face meetings. To add a layer of security, The Title Center uses CertifID, a third- party company that offers wire protection as well as software to validate the identity of all parties involved. “It’s just one more service we provide our customers for real estate transactions,” she notes.
Part of her training focuses on security measures REALTORS® can implement. “We emphasize that while many organizations have strong security measures in place, most individuals don’t,” Diane says. “People often feel safe using their personal devices, but they aren’t as secure as they think. We strongly encourage implementing multiple layers of protection.”
Steps You Can Take to Protect Yourself
- Monitor Property Records: Regularly check the status of your property’s title with your local recorder’s office. Many counties offer online access to property records, including Sangamon County, which provides a free Property Fraud Alert service.
- Protect Personal Information: Be cautious about sharing sensitive details that could be used to forge documents. Shred important papers, limit personal information shared on social media, and be aware of phishing scams aimed at stealing your identity.
- Keep Your Address Updated: Make sure your local recorder’s office has your current mailing address so you promptly receive documents and alerts. This is especially important if you own multiple properties.
- Consider Expanded Title Insurance: While it won’t prevent fraud, title insurance can help cover legal fees and other costs if you need to reclaim your property.
- Consult Professionals: If you suspect any fraudulent activity, consult with a real estate attorney who can help you navigate the complexities of property law and move quickly to protect your rights.