Title Fraud in Canada: An In-depth Analysis

Introduction

Title fraud is a serious issue in Canada that has seen a significant rise in recent years. It involves the illegal use of a property owner’s title, often leading to substantial financial losses for the victims¹². This article will delve into the intricacies of title fraud, how it is planned and executed, and its extent in Canada.

What is Title Fraud?

Title fraud occurs when a fraudster steals the identity of a homeowner or forges their documents to take “legal possession” of their property³. Once the fraudster has the property title, they can sell the property or remortgage it without the actual owners finding out⁴.

How is Title Fraud Planned and Executed?

Title fraud usually starts with identity theft⁵⁴. Fraudsters steal personal information, such as government-issued identity documents, to apply for mortgages or to take steps to buy or sell a home⁴. They then use this stolen identity to pose as the homeowner⁶.

Once they have the homeowner’s identity, they can gain access to the title of the home⁷. With the title in their possession, they can sell the property, apply for a new mortgage against it, or extract value from it in some other way⁴.

The Extent of Title Fraud in Canada

Title fraud has become increasingly common in Canada. In Ontario and British Columbia alone, there were 32 instances of property fraud cases involving individuals posing as owners to either sell a property or secure another mortgage on it in the early months of 2023².

A private investigation firm working for a title insurance company revealed that at least 30 homes in the Greater Toronto Area (GTA) have either been sold or mortgaged without the real owners’ knowledge¹. These scams have cost insurers millions in claims¹.

The Canadian Anti-Fraud Centre (CAFC) received more than 90,000 fraud reports in 2022, with $530 million in reported losses⁷. However, the CAFC estimates that only 5-10% of victims file a fraud report, indicating that the problem could be much larger⁷.

Conclusion

Title fraud is a growing concern in Canada, with significant financial implications for victims. Understanding how it is planned and executed can help in devising strategies to combat it. As we move forward, it is crucial to raise awareness about this issue and take proactive measures to protect homeowners.