Property expert Liv Conlon shares a big mistake people make when selling their home
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Don't miss these essential tips from property expert Jonathan Rolande
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Cyber criminals have hit the headlines over high-profile attacks against major retailers, but scammers targeting the property sector have got scant attention in comparison.
Fraud in the housing market remains a massive issue.
In the worst-case scenario, unwary buyers can see payments for their new homes being diverted directly into the hands of gangsters.
Last year, the Law Society issued an alert saying that 41 per cent of the most threatening organised crime networks look to launder their proceeds via property in some way.
An expert warned about scams in the housing market
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When we think of fraud in the property sector, we usually think of tenants falling victim to scams where deposits are put down on homes that don’t exist or impersonation fraud, where scammers sell a house from under the owner's feet.
In the world of lettings, landlords and their agents should be on the lookout for tenant fraud, where documents are faked to show different names, employment and renting histories.
Scammers are also targeting house buyers, with a type of fraud called "Friday afternoon fraud", or payment diversion fraud, where criminals seek to redirect payments into bank accounts they control.
If that kind of money goes missing from the victim, you can imagine the incentive for criminals is high. You only need to be lucky once as the criminal, and you might get hundreds of thousands of pounds.
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Here are my top tips for best avoiding property fraud
- House buyers need to check the bank account details provided at the very start of the process and only use that
- If you have accidentally transferred money to a scammer, contact your bank immediately
- Use a reputable letting agent to find your tenant – saving on a fee may end up costing considerably more in the long run
- If in doubt, do not accept them. It’s better to have a property empty than have a bad tenant
- Do your own research, check social media and news sites to find a match
- Check references by phone as email addresses are easily faked