Deed Fraud vs. Identity Theft: Understanding the Connection
When discussing homeownership security, the terms deed fraud vs. identity theft are often mentioned together. While they are distinct crimes, they are deeply interconnected. In fact, deed fraud is almost always a direct result of identity theft. Understanding this connection is key to creating a comprehensive protection strategy.
This guide will explain the relationship between these two serious crimes.
What is Identity Theft?
Identity theft is the foundational crime. It occurs when a criminal steals your personal identifying information (PII), such as your full name, address, date of birth, and Social Security number. They can obtain this information from data breaches, phishing scams, or stolen mail.
The criminal’s goal is to use this information to impersonate you for financial gain. This could mean opening a new credit card in your name, filing a fraudulent tax return, or—in the most severe cases—committing deed fraud.
What is Deed Fraud?
Deed fraud is a specific type of crime that is enabled by identity theft. It occurs when a criminal uses your stolen identity to forge a deed and transfer your home’s title into their name. They are, in effect, impersonating you to give your house to themselves.
The connection in the deed fraud vs. identity theft relationship is clear:
- Identity Theft is the key.
- Deed Fraud is the **locked door** the criminal opens with that key.
Without your personal information, a thief cannot convincingly forge the documents needed to steal your title.
How Protection Strategies Differ
Because these are different stages of a crime, they require different protection strategies.
- To fight identity theft: You use tools like credit monitoring, password managers, and credit freezes. These services protect your personal data and your credit score.
- To fight deed fraud: You use a home title monitoring service. This service specifically monitors the public property records—the one place where deed fraud occurs—and alerts you to any changes.
In the deed fraud vs. identity theft debate, one does not replace the other. You need both for complete security. For more on this, read our comparison of HomeLock vs. LifeLock. To learn more about protecting your identity, the Federal Trade Commission (FTC) is an excellent resource.
HomeLock™ is the one Property Fraud Protection service that CAN notify you before, during, and immediately after fraud occurs. If more homeowners had HomeLock™, we wouldn’t see so many scammers like this husband and wife who have defrauded dozens of homeowners!
See how DomiDocs and HomeLock™ can protect your home in this Press Release! This layered approach protects both your legal ownership and your financial identity. For more information, read our article on how HomeLock™ can protect you from Title and Deed Fraud.