Fraud Prevention Tips
At Chicago Title we strive to find ways to save time and money in real estate transactions. We also take pride in our ability to help legal professionals fight the good fight against fraud, serving as a second set of eyes on your transactions.
We are happy to share with you some of our top fraud prevention tips.
Examine photo identification carefully:
- Know your client. Ensure the date of birth is accurate.
- Enlarge ID when copying. Check that it matches who is in front of you, including the signature.
- Question typos in the identification and don’t be afraid to ask questions like the type of car they are driving if presented with a driver’s licence.
- Ask for a secondary piece of identification or a utility bill which includes the address.
- Confirm the validity with the Ministry of Transportation if available in your province.
Be careful with corporate borrowers, especially if you have not acted for them before. Always:
- Ensure the individuals signing on behalf of the corporation have proper authority.
- Question any recent corporate filings.
- Review the minute book.
- Speak to the borrower’s regular corporate lawyer.
Ask questions about the property and review title. Look out for properties that are:
- Tenanted – are you dealing with the true owner?
- Have lots of recent activity on title or mortgage free for a long period of time.
For additional information on tips on how to avoid fraud when disbursing a private lender mortgage, «click here».