London police are warning the public about a scam that can see fraudulent liens on personal property and mortgages taken out in an unsuspecting person's name.
The word of caution comes after a Londoner discovered a $40,000 loan in their name, that they had not consented to.
The fraudulent incident happened between December 1 and 16 after a man claiming to work for a heating and cooling business offered the owner of a home in the area of Egerton and Vauxhall streets a free in-home energy saving inspection. The homeowner agreed and two men showed up to the house to conduct the energy audit.
The men told the homeowner they qualified for a grant and free upgrades to their heating and cooling equipment. They then asked the homeowner for a void cheque and identification to process the transaction. The resident turned over the documents and received new appliances. It was only after they were installed that the homeowner learned a loan for $40,000 had been taken out in their name, police said.
The homeowner told family members who then called police.
Two 27-year-old Kitchener men were arrested. They have both been charged with fraud over $5,000. The pair are to appear in London court on January 29 in relation to the charges.
The scam in this incident is known as the notice of security interest scam and is one people should watch out for, according to the London police financial crime unit
"This scam involves individuals, who prey on a vulnerable sector of our society, through the offering of repairs to your home, appliance installation or consolidation of outstanding debts,” said Detective Sergeant Adam Steele. “People involved in this scam will often initiate contact with their targeted victims, by attending their address or contacting them over the telephone. If something is offered for “free” or at a severely discounted price, the customer should apply the appropriate amount of skepticism to the deal and ask questions before making a decision.”
Steele added that anyone looking to make repairs on their home or purchase new appliances should do their research to ensure they are working with a reputable company.
"We encourage everyone to talk about this type of fraud with their family and friends, particularly seniors and those who may be in a vulnerable position.”
Anyone who believes they may have fallen victim to the notice of security interest scam is advised to call police at 519-661-5670 or the Canadian Anti-Fraud Centre at 1-888-495-8501.
