Real Estate Identity Fraud in Toronto and How to Stop It

Identity fraud in Toronto real estate works like this: someone poses as the owner using fake ID, hires an agent, and lists or mortgages a home that is not theirs. Reports from 2023 pointed to roughly 330 such cases in Toronto. Guarding your personal documents and checking your credit report are the strongest defences.

A lot happened in the Canadian and Toronto housing market in 2023, but the story that caught the most attention and worried the most people was the run of news about identity theft used to buy and sell homes. People woke up one morning, with no warning at all, to find that a very polite fraudster had taken all of their information and traded property under their name. Here is what was going on, written in January 2024, and what you can do about it.

How the Scam Works

The pattern is consistent. A man and a woman present themselves as the two owners of a property. They use fake identification and verification documents. Then they hire a real estate agent to list the home for sale, and unless something breaks the chain, the sale moves forward.

Take some of the real cases. A family who owned a home in Canada left the country for a few months on a work trip. While they were away they learned that someone had sold their property, and they had no idea any of it was happening. In another case, a family noticed that the home of an elderly uncle was being listed for sale. That one was stopped in time, but people had clearly stolen the uncle's identity and intended to sell his house to someone else under his name.

How Common Was It in 2023?

Reports published during 2023 showed around 330 cases of this in Toronto. That figure covers identity theft used for property transactions and mortgages only. The same stolen information gets used for car purchases, online fraud and banking payments too, so the wider picture is bigger than that one number suggests.

Both the police and the Canadian Anti-Fraud Centre issued warnings about it, and that is why it seemed worth pulling your attention to it. This can happen to anyone. I am not trying to disturb your peace of mind or worry you more than necessary. As long as you follow the steps below, you can be reasonably confident it will not happen to you.

Guard Your Personal Information

These are the recommendations the Canadian Anti-Fraud Centre published, and the first one is the plainest. Pay attention to who you are sharing your personal information with. First name, last name, date of birth, email, home address, workplace, anything that identifies you to other people.

Do not casually send a photo of your passport, your PR card or your driver's licence to anyone. If someone in Toronto has an image of your driver's licence, they have your name, your address, your signature and your date of birth in one shot. Always make sure that information goes to people and places that are secure, and never send it to someone you do not know.

Check Statements, Shred Paper, Watch the Mailbox

Check your credit card activity regularly, every day if you can manage it. Open your bank's site or the app for whichever card you hold and look for payments you do not recognise. If something looks strange, search the name of that charge online or call your bank quickly. Look twice at anything suspicious.

When a letter arrives from the bank, or any document with your personal details on it, do not just throw it away. Tear it or shred it so your details cannot be read later and used to steal your identity. Check your mailbox regularly too, because thieves can get at identity documents and important letters sitting in it.

One more thing that matters. If your address changes, tell your financial institutions and banks quickly so nothing keeps going to your old address. If a paper receipt comes to you from somewhere, let them know you have moved. Apply all of this online as well, and stick to secure services wherever you can.

Pull Your Credit Report Twice a Year

Beyond the Anti-Fraud Centre's list, I want to add two pieces of advice of my own that are specific to the Toronto property and lending market. The first is this: at least once every six months, get your credit report and your score from Equifax or TransUnion and go through it properly.

If someone has gone to a bank and taken a loan in your name, or anything has changed in your credit file, that report will show it. It gives you the chance to follow up quickly, make the calls, and stop the fraud or the loss before it turns into something serious.

Keep a Mortgage on the Property

My second piece of advice is for anyone planning to buy a house or an apartment. Even if you have the cash to buy it outright, my recommendation is to keep at least a small mortgage on the property.

The presence of a registered loan makes the fraudster's job much harder. They cannot easily go and register something on your home in your place, and if they need to arrange a second mortgage or another loan against it, that turns into a difficult piece of work, because they have to face a bank. They would need someone at that bank and would have to push the scheme through another institution. It is one more wall between your home and someone who wants to trade it without you.

It has happened many times that people were simply unaware this existed, or did not pay attention to it, and got caught up in fraud in the Toronto housing market. Follow these steps and you are in good shape. If you would like to go through your own situation, fill out the form at the bottom of this page or book a free consultation. Stay well and take care.