Province warns of door-to-door scams that lead to mortgage fraud

The provincial government's Serious Fraud Office (SFO) is warning the public of a multi-layered door-to-door sales scam that is leaving victims with poor renovations, liens, or even a mortgage on their homes.

Despite the ban on door-to-door sales, these fraudsters are continuing to target vulnerable individuals and endearing themselves, giving the impression that they are friendly helpers.

The fraudsters approach individuals at their homes or by phone and use persuasive tactics to convince the homeowner that they need a new appliance, contract, or service. This could include air cleaners, air conditioners, air purifiers, duct cleaning, furnaces, water filters, water heaters, water treatment devices, or even bundles of these goods and services.

Once the service has been completed or the device has been installed, a few things can happen to make the situation even worse.

The victim may be contacted by someone claiming to be from a law firm, offering assistance to exit previously signed contracts, remove possible liens, and consolidate incurred debts.

If a grant is offered, the victim is then contacted by a home renovation company and is convinced to sign a contract and speak with a finance company.

This is all done under the guise of complying with the grant, but in reality, it is the process to have a mortgage approved on their home.

The funds are then deposited into the victim's bank account, appearing to be a grant but in reality are funds from a home equity mortgage. The victim is told not to touch the money, as it must go toward renovations, as well as to the payments they were making for installed equipment.

To protect yourself and your loved ones from falling victim to this scam, the SFO recommends answering the door only if you are expecting an invited guest.

It also recommends hanging up on unsolicited phone calls, never sharing personal information, and not making a decision on the spot.

Check regularly on family or others who might be vulnerable to persuasive and persistent individuals.

It is important to take the time to understand what you are signing, check your credit history online, and look up your property on the Land Registry Ontario website.

A red flag of the scam is if the person at the door says you have won a class-action lawsuit regarding the installation of equipment and the money can only be used for renovations.

If you are told renovations are free, or if you are pressured to have renovations started right away, it is likely a scam.

If you believe you have fallen victim to this fraud, contact your local police service and the Canadian Anti-Fraud Centre at 1-888-495-8501 (toll-free) or report online on the Fraud Reporting System (FRS). 

You can also call Crime Stoppers at 1-800-222-8477 (TIPS) or report the incident online at www.ontariocrimestoppers.ca.