Fraud 6: ID Verification in a Digital Age: Preventing Title and Identity Fraud
- sknightrisk
- Sep 26
- 2 min read
There’s something uniquely unsettling about title fraud. It’s not just the financial damage—it’s the human cost. Imagine discovering your home has been mortgaged or sold without your knowledge, and now you’re fighting to get it back. As underwriters, we’re not just approving deals—we’re protecting people’s ownership, their equity, and sometimes their sense of safety.
And yet, verifying identity often feels like a checkbox. Two pieces of ID, quick signature match, move on. But in today’s world of high-quality forgeries and synthetic identities, that approach just doesn’t cut it anymore.
The Rise of Impersonation and Title Fraud
It used to be rare. Now it’s in the news.
Fraudsters are using stolen IDs and forged documents to impersonate homeowners—often elderly or absentee—and take out mortgages or sell properties they don’t own. Private lenders are prime targets because we tend to move faster, and we often don’t meet borrowers in person.
In one Ontario case, a fraudster used a fake Power of Attorney to register a new mortgage on a paid-off home. Everything looked clean—ID copies, credit check, even utility bills. But a closer review showed the utility account didn’t match the property, and the PoA was never verified. That one mistake cost the lender hundreds of thousands.
What Real ID Verification Looks Like
Checking ID isn’t just about matching names and photos. It’s about confirming that the person in front of you is who they say they are—and that they have the legal right to borrow.
Key best practices:
Always require a government-issued photo ID. Health cards and bank cards aren’t enough.
Check for physical signs of tampering. Look for blurry text, inconsistent fonts, red-eye in photos, or mismatched laminate patterns. Use UV lights or blacklight tools if you have them—many IDs have security features that fakes can’t replicate.
Match ID to the credit bureau and application. Dates of birth, middle names, address history—any mismatch must be explained and documented.
Be wary of Power of Attorney claims. If someone is signing on behalf of the borrower, verify the PoA through legal channels and speak with the grantor directly when possible. Fraud rings often exploit PoAs to bypass in-person checks.
Digital Tools That Strengthen Your Process
You don’t have to do this manually anymore. Several tech solutions now offer digital identity verification, including:
Trulioo, Jumio, Verified.Me – scan government ID, compare it with a selfie, and confirm facial match.
Multi-factor authentication (MFA) – send a code to the borrower’s phone or email to confirm they’re in control of their credentials.
Digital signing platforms with video calls – some e-sign tools now offer live ID verification or notary check-ins during signing.
If your borrower refuses or delays these steps? That’s not a privacy issue—it’s a red flag.
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