Mortgage Frauds get sophisticated amidst economic crisis

Amidst global financial crisis, online mortgage frauds are finding more opportunity with email and phishing scams. Such scams involve fraudsters claiming to offer new mortgages or loans from banks which aren’t doing well in business.

Experts feel that the scammers have taken opportunity of the credit crisis and growing financial insecurity of consumers in the midst of the crisis. The wide variety of offers made by scammers range from refinancing mortgages, low interest loans to credit card approvals. And in return they do charge a fee.

Around 109 million people in US have received phishing emails with about 3.6 million adults losing money to phishing attacks in 12 months ending August 2007. During this time period, financial losses due to phishing attacks reached around $3.2 Billion in the US.

In order to reduce such scams all around the world, Microsoft formed a coalition with Yahoo, African Development Bank and Western Union. Their primary aim was to spread awareness about online frauds such as hoax emails and lottery scams. As per experts, Internet lottery scams are the most common form of advance fee fraud wherein the victim is deceived into paying cash upfront with the promise that he’ll be receiving a fictitious gift or cash prize.

Keeping in mind the growing number of scams and frauds on the internet, Microsoft conducted a poll in which more than a quarter of online users thought they could become victims of online fraud that could cost them a lot of money. Around half of the users commented that they feared shopping online or providing personal information in case of online transactions.

Microsoft officials have reportedly said that they find an increase in online mortgage fraud. And they do expect such online frauds to evolve and get more sophisticated as the financial crisis deepens.