Fraud Awareness Alert - House Stealing (2008-2)

House stealing is the latest scam on the block according to the Federal Bureau of Investigation (FBI). This is a crime combination of two popular rackets - identity theft and mortgage fraud.

How it generally works:

The con artists start by picking out a house to steal - say, YOURS. Next, they assume your identity by obtaining your name and personal information. This is easy to do with information that can be found on the internet. The thieves use this information to create fake identification cards, social security cards, etc. Then, they go to an office supply store and purchase forms that transfer property. After forging your signature and using the fake identification, they file these deeds with the proper authorities, and your house is now THEIRS.

There are some variations on this type of fraud ...

• The con artists find a vacant house such as a vacation home or rental property. By doing a little research they can find out who owns it. They steal the owner's identity before proceeding with the same process of transferring the deed, selling the empty house, and pocketing the money.
• The con artists steal a house a family is still living in and finds a buyer (someone who is satisfied with a few online photos). This way they can sell the house without the family even knowing. In fact, the rightful owners continue paying the mortgage for a house they no longer own.

In a recent case out of Los Angeles that was investigated by the FBI and the Internal Revenue Service, a real estate business owner in southeast Los Angeles plead guilty to leading a scam that defrauded more than 100 homeowners and lenders out of approximately $12 million. The business owner promised to help struggling homeowners pay their mortgages by refinancing their loans. Instead, the individual along with partners, used stolen identities or "straw buyers" (people who are paid for the illegal use of their personal information) to purchase these homes. They then pocketed the money they borrowed but never made any mortgage payments. In the process, the true owners lost the title to their homes and the banks were out the money they loaned the fake buyers.

How can you prevent becoming a victim of this type of fraud?

Unfortunately, there is no easy solution so you have to stay vigilant in watching your mail and checking personal records. For example, if you receive a payment book or information from a mortgage company that is not yours, whether your name is on the envelope or not, do not just throw it away. Open it, figure out what it is saying and immediately contact the company that sent it. The FBI recommends that, from time to time, you check all information pertaining to your house through the county's deed office. If you see any paperwork you do not recognize or any signature that is not yours, look into it as soon as possible.

House-stealing or mortgage fraud schemes are becoming more common. You can contact the FBI or your local police if you think you have been victimized.

The IRS has issued previous warnings on scams that use the IRS to lure victims into believing the scam is legitimate. More information on identity theft, phishing and telephone scams using the IRS name, logo or spoofed (copied) website is available on the IRS website at IRS.gov. Enter the terms "phishing," "identity theft" or "e-mail scams" into the search box in the upper right corner of the front page.

For more information about reporting suspected fraud, waste or abuse to the Office of Inspector General, please call one of us in the Office of Investigations: Special Agent Aaron Jordan at ext. 3744, Special Agent Tom Zigan at ext. 3104, Special Agent Jay Hancock at ext. 6991, Special Agent Cornelia Green at ext. 3315 or Special Agent Claressia Jones at ext. 3685 (TTY/TDD Users: 202-326-4115).