According to Mortgage Insurer QBE, organised crime gangs are targeting recent migrants and the elderly, by taking out mortgages against their properties without their knowledge.
QBE LMI reports that mortgage fraud is costing the finance sector millions of dollars every year.
Criminal rings defraud banks of millions of dollars by forming alliances with real estate agents, valuers, developers, accountants and loan originators.
They simply concentrate on stealing identity documents which allow them to impersonate property owners and borrow against their property.
In most cases, victims are unaware they have been targeted until they are contacted by a bank looking to collect loan repayments.
People need to be aware of the dangers of this crime and be very vigilant with where and who they give access to their personal information.
When mortgage fraud occurs it is generally the lender not the borrower who pays for it, but it raises costs throughout the industry, which flow through to customers.
New migrants and the elderly are less aware of the rules in the finance industry and can be easy victims for crime gangs.
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