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Land Registry helping crooks 'steal' homes
Criminal gangs have stolen £12m in the past two years by exploiting loopholes in the Land Registry website.
They gained access to sensitive information about property transactions from the site and used details to launch complex frauds - on one occasion netting £8m.
Under the old system new title deeds were issued manually each time a home changed hands. To get details people had to go to a Land Registry office and needed permission from the property owner.
Now, however, the register is updated electronically and details can be downloaded from the website for £3 a time - making it easy for criminals to access mortgage account details and signatures.
Police are investigating several cases in which fraudsters tricked banks, building societies, solicitors and officials into transferring ownership into their name after using the website and fake ID.
The thieves fraudulently sell the house and disappear with the proceeds or take out a mortgage and vanish with the money. The properties are usually occupied by tenants and it can be months before the real owner uncovers the scam. Last night Tory MP and ex-Cabinet Minister Peter Lilley - one of whose constituents was a victim - called for signatures to be removed from online documents.
'I want to raise the matter [in a Commons debate] before it becomes more widespread,' Mr Lilley said.
In one incident under investigation, a tenant copied the homeowner's signature to give himself power of attorney. He then took out a £150,000 mortgage, had the money paid into a bogus bank account and disappeared with the cash.
The owner knew nothing until he received building society letters warning the house was about to be repossessed.
Victims are eventually compensated but often endure months of fending off debt collectors as they struggle to convince the authorities a fraud has been committed.
West Midlands Police have charged seven people over a suspected £1.3m fraud using Land Registry papers.
The Land Registry is discussing tighter security with the Council of Mortgage Lenders. A spokesman said: 'If someone is a victim we have a compensation scheme.'
They gained access to sensitive information about property transactions from the site and used details to launch complex frauds - on one occasion netting £8m.
Under the old system new title deeds were issued manually each time a home changed hands. To get details people had to go to a Land Registry office and needed permission from the property owner.
Now, however, the register is updated electronically and details can be downloaded from the website for £3 a time - making it easy for criminals to access mortgage account details and signatures.
Police are investigating several cases in which fraudsters tricked banks, building societies, solicitors and officials into transferring ownership into their name after using the website and fake ID.
The thieves fraudulently sell the house and disappear with the proceeds or take out a mortgage and vanish with the money. The properties are usually occupied by tenants and it can be months before the real owner uncovers the scam. Last night Tory MP and ex-Cabinet Minister Peter Lilley - one of whose constituents was a victim - called for signatures to be removed from online documents.
'I want to raise the matter [in a Commons debate] before it becomes more widespread,' Mr Lilley said.
In one incident under investigation, a tenant copied the homeowner's signature to give himself power of attorney. He then took out a £150,000 mortgage, had the money paid into a bogus bank account and disappeared with the cash.
The owner knew nothing until he received building society letters warning the house was about to be repossessed.
Victims are eventually compensated but often endure months of fending off debt collectors as they struggle to convince the authorities a fraud has been committed.
West Midlands Police have charged seven people over a suspected £1.3m fraud using Land Registry papers.
The Land Registry is discussing tighter security with the Council of Mortgage Lenders. A spokesman said: 'If someone is a victim we have a compensation scheme.'
