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
Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts
Friday, March 6, 2009
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