Mortgage fraud is on the rise globally, harming homeowners, businesses and the economy. New ways to detect and prevent mortgage fraud have been developed to discover and prevent criminals before it happens; rather than after the damage has been done. The article An Insight into the World of Mortgage Fraud in the US and UK by Beverly Houlbrook talks about mortgage fraud and how it is becoming increasingly evident “as economies enter periods of recession and house prices collapse” (34 ). It states that global mortgage markets are providing “increased opportunities for professional and innovative fraudsters to exploit and profit from loopholes and weaknesses in the system” (34). Houlbrook goes on to discuss the different types of mortgage fraud, from light fraud to professional mortgage fraud. . Real estate fraud (a mild fraud) occurs when an applicant acts alone to acquire a property. In terms of volume, it is the most common type of mortgage fraud based on misrepresentation of income and employment on the mortgage application. For-profit fraud (a professional mortgage fraud) occurs when numerous identities of borrowers, lenders, “fictitious properties, and overhyped professionals” are involved (34). The losses created by profit fraud can be substantial and lead to national and international headlines. It can also support the lifestyle of criminals by “concealing money laundering, weapons trafficking, and drug trafficking activities” (34). Two common types of fraud in the US and UK are identity or home theft and employment fraud (buy-to-let (BLT) mortgages). Home invasion occurs when the property is purchased or financed “without the owner's knowledge” (35). Employment fraud occurs when “BLT owners attempt to disguise buy-to-l… middle of paper… due to increased foreclosures and fewer homebuyers for the first time, putting the owner in a position of strength" (42). As more and more economies enter recession and home prices fall; Mortgage fraud in the US and UK has increased causing harm to innocent homeowners, businesses and the economy. In an effort to combat mortgage fraud, controls have been put in place to prevent damage before it is done. As mortgage fraud has increased dramatically, homeowners and businesses must find a way to protect themselves and spot when a deal is simply too good. The most important way to protect yourself or your business from mortgage fraud is through education, learning the facts about investing down to the smallest nuances. Works CitedHoulbrook, B. (2011). A look into the world of mortgage fraud in the US and UK. International real estate finance , 25 (3), 34-42.