--- title: Mortgage fraud and the problem with mere ID validation description: Identity theft has spread to real estate, and can affect other financial institutions as well, even those with anti-fraud measures in place already. image: https://blog.fraudfighter.com/hs-fs/file-15557673-jpg/images/photo_18287_20100630.jpg --- [![FF-PurpleBlack-2 1](https://blog.fraudfighter.com/hubfs/FF-PurpleBlack-2%201.png) ](https://www.fraudfighter.com) - Solutions - [Counterfeit Detection](https://www.fraudfighter.com/counterfeit-detection) - [Identity Authentication](https://www.fraudfighter.com/identity-authentication) - [FraudFighter ID](https://www.fraudfighter.com/id) - [UV Counterfeit Detection](https://www.fraudfighter.com/counterfeit-detection) - [Money Handling & Verification](https://www.fraudfighter.com/products/money-counters) - [Compliance & Risk Mitigation](https://www.fraudfighter.com/education/compliance-management) - Products - [Counterfeit Detection Devices](https://www.fraudfighter.com/products/uv-counterfeit-detectors) - 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[FraudFighter ID Installation](https://www.fraudfighter.com/id/support/installation) - [Software Downloads](https://www.fraudfighter.com/resources/support/software-update-downloads) [![Shop](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/76574/c274e2d2-3016-4d51-92fb-412e5fae5e5b.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/76574/c274e2d2-3016-4d51-92fb-412e5fae5e5b) [![Contact Us](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/76574/b7e7dfcf-98d3-4e1a-86d5-794b27b325e6.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/76574/b7e7dfcf-98d3-4e1a-86d5-794b27b325e6) ![](https://blog.fraudfighter.com/hs-fs/file-15557673-jpg/images/photo_18287_20100630.jpg) [Identity Theft](https://blog.fraudfighter.com/topic/identity-theft) ![time](https://blog.fraudfighter.com/hubfs/raw_assets/public/LandingPageTheme/images/time-icon.png) 1 minute read # Mortgage fraud and the problem with mere ID validation ### [Gary Satanovsky](https://blog.fraudfighter.com/author/gary-satanovsky) July 12, 2010 - [** ](https://twitter.com/share?source=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&text=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation%20-%20https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation) - [** ](https://www.facebook.com/sharer/sharer.php?u=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&title=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation&picture=http://cdn2.hubspot.net/hub/76574/file-15557673-jpg/images/photo_18287_20100630.jpg&description=Identity%20theft%20has%20spread%20to%20real%20estate,%20and%20can%20affect%20other%20financial%20institutions%20as%20well,%20even%20those%20with%20anti-fraud%20measures%20in%20place%20already.) - [** ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&title=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation&summary=Identity%20theft%20has%20spread%20to%20real%20estate,%20and%20can%20affect%20other%20financial%20institutions%20as%20well,%20even%20those%20with%20anti-fraud%20measures%20in%20place%20already.) [![verify id](https://blog.fraudfighter.com/hs-fs/file-15557673-jpg/images/photo_18287_20100630.jpg?width=215&height=139&name=photo_18287_20100630.jpg)](https://www.fraudfighter.com)  In previous posts we have discussed the necessity of [identity authentication](https://www.fraudfighter.com/fraud-prevention-products/identification-verification/assuretec-id-150) for retailers, who face unscrupulous fraudsters with forged credit cards; as well as banks, casinos and other “financial institutions” who will soon be bound by law to establish customer identity as part of the expansion of the [Bank Security Act](https://www.fraudfighter.com/compliance-regulations/act-bank). This is by no means an exhaustive list – as recent events have shown, the range of institutions affected by identity theft now includes mortgage brokers, and continues to spread. A major [mortgage fraud](https://www.fraudfighter.com/financial/mortgage-fraud-prevention) crackdown in Florida netted 10 criminals accused of taking out $8 million in loans under stolen identities. According to Florida Department of Law Enforcement:   Investigators allege the scheme included the recruitment of straw buyers, who were provided with fraudulent Florida and New Jersey driver licenses and the personal identification information of unsuspecting victims. Using the victims’ identities, the straw buyers obtained credit and purchased properties for which they never intended to make any mortgage payments. The same properties were resold or "flipped” numerous times, often using the same scheme.   Obviously, not only the banks that approve mortgage loans, but realtors themselves, who are the first and main interface with the buyers, need to be vigilant against this emerging threat. **In fact, most financial institutions, even those that already have current active anti-fraud measures in place, are vulnerable**. The real challenge lies with the method of identity verification, rather than merely the presence or absence of those programs. Currently, the most common authentication method involves cross-checking customer-provided data against database information. [Red flags](https://www.fraudfighter.com/compliance-regulations/red-flag-rules) only go up if the address, driver license, social security or other common points would not match up. This certainly would not catch the Florida mortgage thieves, who had most of that information on hand. Identity data verification can, in fact, only deter a small proportion of relatively less sophisticated identity theft crimes. **Popular online database identity-verification services cannot keep up with modern high-tech criminals.** Instead, new tactics focusing on the identity documents themselves, rather than the easily-obtainable information they display, are needed. In the coming weeks, Fraud Fighter will be conducting a webinar to showcase and display these new tactics; we will also lay out a general overview of the subject later this week. Until then, we invite you to follow our Twitter feed [@FraudFighting](http://twitter.com/fraudfighting) for the latest fraud news and trends.   - [**](https://twitter.com/share?source=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&text=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation%20-%20https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation) - [** ](https://www.facebook.com/sharer/sharer.php?u=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&title=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation&picture=http://cdn2.hubspot.net/hub/76574/file-15557673-jpg/images/photo_18287_20100630.jpg&description=Identity%20theft%20has%20spread%20to%20real%20estate,%20and%20can%20affect%20other%20financial%20institutions%20as%20well,%20even%20those%20with%20anti-fraud%20measures%20in%20place%20already.) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fraudfighter.com/bid/43172/Mortgage-fraud-and-the-problem-with-mere-ID-validation&title=Mortgage%20fraud%20and%20the%20problem%20with%20mere%20ID%20validation&summary=Identity%20theft%20has%20spread%20to%20real%20estate,%20and%20can%20affect%20other%20financial%20institutions%20as%20well,%20even%20those%20with%20anti-fraud%20measures%20in%20place%20already.) ![shape](https://blog.fraudfighter.com/hubfs/raw_assets/public/LandingPageTheme/images/shape-new02-new.png) ## Related Blogs ![](https://blog.fraudfighter.com/hubfs/Identity-authentication-financial-institutions-bank-secrecy.png) [Identity Verification](https://blog.fraudfighter.com/topic/identity-verification) ![time](https://blog.fraudfighter.com/hubfs/raw_assets/public/LandingPageTheme/images/time-icon.png) 10 minute read ## [What Are the Top Identity Verification Solutions for Compliance Teams?](https://blog.fraudfighter.com/what-are-the-top-identity-verification-solutions-for-compliance-teams) Identity verification solutions enable compliance teams to confirm user identities while preventing... ![](https://blog.fraudfighter.com/hubfs/Stock%20images/Close%20up%20of%20human%20hands%20and%20documents%20with%20graphs%20and%20diagrams.jpeg) [Document Verification](https://blog.fraudfighter.com/topic/document-verification) ![time](https://blog.fraudfighter.com/hubfs/raw_assets/public/LandingPageTheme/images/time-icon.png) 11 minute read ## [How Do Document Verification Solutions Reduce Loan Fraud Losses?](https://blog.fraudfighter.com/how-do-document-verification-solutions-reduce-loan-fraud-losses) Document verification solutions reduce loan fraud losses by authenticating identity documents,... ![](https://blog.fraudfighter.com/hubfs/ID-150-no-bg.png) [Identity Authentication](https://blog.fraudfighter.com/topic/identity-authentication) ![time](https://blog.fraudfighter.com/hubfs/raw_assets/public/LandingPageTheme/images/time-icon.png) 7 minute read ## [What ID Authentication Technology Stops Fraud Before It Happens?](https://blog.fraudfighter.com/what-id-authentication-technology-stops-fraud-before-it-happens) Identity fraud losses reached USD 27.2 billion in 2024, forcing enterprises to adopt pre‑emptive... ![FF-PurpleBlack-2](https://blog.fraudfighter.com/hubfs/FF-PurpleBlack-2.png) 1743 South Grand Ave. Glendora, CA 91740 US: (888) 664-9325 Intl: (626) 213-2702 ### Products - 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