TL/DR –
Kent County in Michigan is battling property fraud by implementing the Fraud Notify system. The free online tool alerts subscribers to potential mortgage fraud, property theft, and identity theft. Introduced by County Clerk/Register of Deeds Lisa Posthumus Lyons, the system allows property owners to take legal action sooner, as they are notified of fraudulent activity involving their property, which they can subsequently report to law enforcement.
Kent County Fraud Notify System Tackles Property Fraud
Kent County Clerk/Register of Deeds, Lisa Posthumus Lyons, is utilizing the Fraud Notify system to combat property fraud. The free online tool issues alerts via email regarding potential mortgage fraud and property identity theft. Property owners can subscribe to Fraud Notify here.
Property fraud is a growing concern nationwide and Kent County is no exception, says Thomas W. Cronkright II, CEO of Grand Rapids-based Sun Title. Cronkright, also an executive chairman of CertifID, a technology platform to protect electronic payments from fraud, states that property fraud is “the fastest form of real estate fraud”.
In 2023, roughly 25 cases of property fraud were reported in Kent County. This year, the number has surged to over 40. The financial loss is distressing, and the full scale of the schemes remains unknown.
Impact of Fraud and Importance of Fraud Notify System
Posthumus Lyons cautions that the extent of fraudulent deeds filing is still unclear, underscoring the urgency of the Fraud Notify system. Often, the crime isn’t detected until the rightful owner attempts a transaction on their property. In such cases, the Fraud Notify system equips property owners to take legal action promptly.
Upon notification of fraudulent activity through Fraud Notify, property owners can report to law enforcement, who then initiate an investigation that proceeds through the criminal justice system. In 2023 alone, there were over 12,000 victims of property fraud, title theft in the US, resulting in losses equating to $350 million.
Victims of Fraud and the Need for Prevention
Cronkright himself has been a victim of wire fraud. His unsettling experience led to the creation of CertifID, a technology platform designed to protect electronic payments from fraudsters. More details on this can be found here.
Once the ownership is fraudulently altered, the thief often sells the property. The victims not only lose their most significant financial asset but also bear the outstanding mortgage debt. They must navigate through the legal and criminal justice system, usually at high cost.
The average fraudulent sale of title claims is $130,000, making a full investigation less likely due to cost. However, tools like Kent County’s Fraud Notify system can help property owners protect themselves from such fraudulent activities.
—
Read More US News