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 the fact; 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 becomes more evident "as economies enter periods of recession and mortgage prices real estate prices are falling” (34). He explains how global mortgage markets provide “more 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, ranging from light fraud to professional mortgage fraud. . Housing fraud (soft fraud) occurs when an applicant acts alone to acquire a property. In terms of volume, this is the most common type of mortgage fraud based on false statements of income and employment on the mortgage application. Fraud for profit (professional mortgage fraud) occurs when multiple identities of borrowers, lending institutions, “fictitious properties and overvalued professionals are involved” (34). The losses created by profit fraud can be substantial and make national and international headlines. It can also support the lifestyle of criminals by “concealing money laundering, arms and drug trafficking activities” (34). Two types of fraud are common in the United States and the United Kingdom: identity or home theft and occupancy fraud (rental mortgage loans (BLT)). House theft occurs when property is purchased or financed “without the owner’s knowledge” (35). Occupancy fraud occurs when "BLT owners attempt to hide the purchase in the middle of paper...... due to the increase in possession foreclosures and the decrease in the number of purchasers of BLTs." 'a first home, which puts the owner in a position of strength' (42).As more economies enter recession and property prices decline; Mortgage fraud in the US and UK is on the rise, causing harm to innocent homeowners, businesses and the economy. To combat mortgage fraud, controls have been put in place to prevent damage before it happens. As mortgage fraud has increased significantly, homeowners and businesses need to find a way to protect themselves and detect when a deal is just too good for comfort. The most important way to protect yourself or your business from mortgage fraud is to learn the facts about investing down to the smallest nuances through education. Works cited Houlbrook, B. (2011). An insight into the world of mortgage fraud in the US and UK. International housing finance , 25 (3), 34-42.