News 14 Carolina's Bryn Hough spoke to FBI agents who have some advice on how to stay safe from financial criminals.
CHARLOTTE -- It's National Consumer Protection Week and the government is using this time to warn Americans about some of the most common fraudulent schemes. That includes mortgage fraud, which experts say is on the rise.
"Buying real estate will probably be the largest financial decision you make as a consumer," said FBI supervisory special agent Timothy Halodik.
For criminals, he says, it's also one of the most profitable types of fraud.
"Because of the increase in buying and selling real estate, the FBI has made mortgage fraud the No. 1 priority within our white collar crime or financial crime program," Halodik said. "Mortgage fraud primarily involves the buying and selling of properties where you have an inflated value attached to the property."
The FBI estimates that 80 percent of all mortgage fraud involves the collusion of an industry insider.
Once a loan for the inflated amount is given, those involved in the criminal activity will take out the money.
"We anticipate that 80 percent of all mortgage fraud involves the collusion of an industry insider, such as an appraiser, a realtor, a broker or a closing attorney," said Halodik.
Gretchen C.F. Shappert, U.S. attorney general of western North Carolina, says mortgage fraud is not limited to a particular group.
“It does have a cascading effect on a community, and as we're seeing, it has a cascading effect on the national economy," she said.
The FBI has some tips to keep you from being a victim.
"If your property is significantly higher than all the other properties in the surrounding area, then the appraisal may be inflated,” Halodik said. “If you’re asked to falsify any information on aloan document, that's an indication of fraud."
Halodik says his best advice is that you carefully read over documents and make sure you understand everything you are signing. And if it sounds too good to be true, it probably is.
The FBI says the number of mortgage fraud cases has tripled since 2003. Right now, there are more than 1,200 pending cases.