Utah enjoys a particular distinction, the testing ground for new forms of fraud. If it works in Utah, the crooks take it on the road elsewhere. How bad is the problem?
The article points out some interesting facts:
Fraud charges are almost twice what they were a decade ago.
We continue to enjoy new fraud schemes as well as provide continued support for old frauds.
Despite our record for high fraud we still don't have a fraud prosecutor. Funding for the position was cut with the budget.
Fraud is difficult and time consuming to investigate.
In Utah County alone, the FBI says it is investigating mortgage fraud cases in which losses have exceeded $150 million. I wonder what it is for the whole state......
With these kind of losses, I have to wonder why it isn't receiving more attention.
Part of the reason we are in the situation we are now is a result of home value inflation scams that pushed prices up in targeted neighborhoods, contributing to the number of homes that are underwater. Yet due to the difficulty of investigating these types of scams many of the perpetrators will walk away to scam again another day.
Dealing with these scams are difficult for another reason. Those in the best position to identify the scams often benefit from them. Lenders and realty agents are paid on commission, so seeing higher home values equals more money for them when the home sells. This creates a disincentive for them to report suspicious price levels and activities.
What kind of disincentives can we create for scammers? How can real estate and lending professionals help?
http://www.abc4.com/news/local/story/Insurance-fraud-on-the-rise/SQWVJTUdHU-BsBKIJTDSqA.cspx
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I love that you are addressing this issue. The other part we should ask is, why do scams happen so much here in Utah? I have lived in several places, and for some reason people in Utah LOVE the get rich quick scheme. I think Provo is probably the worst. I got presented with tons of get rich schemes. My favorite was the one I turned down but my friend told me, "that's ok I prayed about it and I know that someday you will join." Needless to say - not good friends anymore. However, I did get burned once (no wait twice - shame on me) but have been very leary of ever doing it again.
ReplyDeleteWhy can't Utahns get it through their heads, if you want money you have to work for it - inlcuding SOUND investment and savings. The only multilevel I ever want to see in this state is a jello parfait (sorry Amway). I agree the scammers are evil and should burn in hell, but we also need to accept the idea of using sound principles to make money. Just a thought, I will now step off my soapbox, thank you.
I am going to risk ire by waxing religious.
ReplyDeleteI think part of it is the culture. There are some that assume because they are "living right" and doing what they feel is expected of them that God will place opportunities in front of them to reward them. I don't know that they look the danger rather than looking for the blessing.
The BOM tells us that if we seek for riches with the intent of doing good, after we have sought the kingdom, then he will bless us with them. I thin the key here is what you brought up, the blessing will come as a result of hard work and sound investments rather than through a quick high risk scheme.
I also think that no matter what people say about them Utahns tend to look for the good in others and assume that they are offering a genuine opportunity rather than trying to take advantage of them. In that way they are perhaps more gullible than greedy.