Home loan fraudsters target migrants and the elderly

Home loan fraud is on the rise, with scammers targeting recent migrants and the elderly, it has been revealed.

Ian Graham, chief executive of mortgage insurer QBE LMI, noted that rogue real estate agents, valuers, developers, accountants and loan originators will defraud banks and other lenders in order to achieve their cons.

Speaking to News Limited, he said: "Organised criminal rings are manipulative and work towards pilfering the identities of people who own their properties.

"Criminals acquire loans masquerading as these people and using their property as security. Victims are unaware they have been targeted until they are contacted by a bank chasing loan repayments."

Mr Graham’s warning suggests that property owners and buyers should look to compare home loans wherever possible to ensure their rights and identities are being protected.

Phil Naylor of the Mortgage and Finance Association of Australia also told News Limited that new migrants and the elderly are common victims who are often manipulated into thinking they will be able to make money quickly by investing with the fraudster.

Last week, it was reported that National Australia Bank customers in England and Scotland are facing higher monthly repayments after an admin error saw the bank undercharge home loan holders $32.8 million in interest over the past four years.

This article is brought to you by Mozo – Helping you compare home loans ADNFCR-1761-ID-19907330-ADNFCR