The downside of transparency
Fraud is a deliberate deception used to secure an illegal gain. For some time now, we have been indoctrinated about the negative consequences of credit card fraud and how easy it is for people to assume your identity and fraudulently obtain credit in your name. Now there may be more to worry about, and it has even worse consequences.
You may or may not know that practically every financial document related to the sale and ownership of your property is recorded on Manatee County’s Website which is open to the public. This includes the deed to your property, every page of your mortgage agreement, any liens filed against your property including mechanic's liens, IRS liens, non-payment of condo association fees and anything else that might be applicable to your real estate.
These documents contain pertinent and, in my opinion, private information in addition to your name and address. This may include your actual signature as well as the signature of the seller, the terms of your mortgage, the purchase price of your home, the date of purchase and your marital status.
Counties around the country like Manatee County have made a decision to make this information available to the public in an effort to promote transparency, but like a lot of noble purposes, this one has unintended consequences. The unintended consequences can range from simple credit card fraud all the way to producing fraudulent deeds and reselling the property to unsuspecting buyers. Investment properties are prime for this type of exposure since many are not occupied 12 months a year, making it relatively easy for swindlers to impersonate owners.
Think about how easy it is to duplicate official records once you have the appropriate information. A deed is just a piece of paper that you can print out off the Internet and Social Security numbers are not that secure anymore, since everyone asks you for yours even at the doctor’s office. Once someone has the basic information it doesn’t take Einstein to figure out how to obtain driver’s licenses, birth certificates and, of course, credit cards.
So who’s to stop you from having a locksmith rekey a vacant house after you prove to him you’re the owner and then putting it up for sale. Even a title company could be fooled, and if the potential buyer is getting a great cash deal he/she may not even use a title company. After all, who’s to say you’re not the John Smith who owns the house on Elm Place if your identification backs you up? Remember there are no pictures associated with your deed or mortgage on line, only names and signatures.
It you’re thinking this can’t really happen, guess what? It already has. In New York City where some of the smartest people live, there were 30 cases reported and four grand larceny arrests last year. The group involved was forging or attempting to forge new deeds using online records as reported by the Manhattan District Attorney’s Office, I guess the New York City criminals also are pretty smart.
The intended consequences of this column is to remind you to keep an eye on everything involving your credit and personal information. At least be aware that there are people out there who want to be you and will do whatever they can to achieve that, intended or unintended.