Mortgage Fraud Involving Counterfeit Certificate of Title
The NSW Department of Lands issued a Circular in February 2009 warning everyone involved in lending or conveyancing transactions that a mortgage fraud scheme is operating in Victoria affecting land in New South Wales.
The Circular stated:
“The counterfeits are being used as security to obtain mortgages. They have been produced by superimposing details of a genuine title on forged certificates in the format used prior to the introduction of certificates with enhanced security features in January 2004. The counterfeits are of reasonably high quality and were used in conjunction with forged identity documents purportedly proving that the fraudster was the registered proprietor of the land in the title.
Conveyancing practitioners who are approached by potential clients previously unknown to them should act with extreme caution. Practitioners are strongly advised to seek confirmation from LPI of the authenticity of any Certificate of Title offered by such clients particularly where the format of the certificate does not incorporate security features introduced in 2004.”
Fraud within the conveyancing and mortgage industries is becoming an increasingly serious issue for conveyancers in all jurisdictions in Australia. Recent national statistics indicate that 21% of all serious fraud offences committed in Australia and New Zealand involve mortgage fraud. There has also been a dramatic increase in the use of false and forged documentation and fictitious identities in carrying out mortgage fraud against lenders. 
Stewart Title’s Residential Purchaser Policy provides compensation to the home owner for losses arising from mortgage fraud.
Stewart Title’s underwriting staff are experts in the area of fraud risk management and are able to offer Conveyancing practitioners and their staff in-house seminars that provide information on how to identify fraudulent transactions and other steps they can take to help prevent mortgage and conveyancing fraud from occurring. Please contact us on 1800 300 400 to express your interest in a seminar.