Fraudulent Transactions Identification in Bulgaria: A Growing Concern

As the global financial crisis continues to have a lasting impact, crime levels in Bulgaria are on the rise. One of the most significant concerns is property-related fraud, which has become a growing threat to individuals and businesses alike.

Types of Property Fraud

According to the National Police Directorate General, there are two main types of property fraud:

• Acts or failures to act by legal entities and public administration officials: This type of fraud involves corruption among government officials responsible for approving architectural designs and development plans. They may accept bribes or manipulate the process to benefit their own interests.
• Individuals using embezzlement, misuse of personal data, and fake brokers: Fraudsters target foreign buyers who are not familiar with Bulgarian law. They use false documents and deceitful tactics to acquire properties at discounted prices.

Methods Used by Fraudsters

To carry out these fraudulent transactions, criminals use a range of false documents, including:

• Last wills and testaments
• Certificates of death or inheritance
• Minutes of meetings with decisions to change company managers
• Promissory notes, which are often falsified, to initiate enforcement proceedings and acquire property at discounted prices.

Efforts to Prevent Fraud

To combat property fraud in Bulgaria, the Communication and Information Systems Directorate with the Ministry of Interior has implemented an electronic data access service for Bulgarian identity documents. Notary Publics also have access to:

• Property Register of the Registry Agency
• National Database “Population”, which provides information on legal successors of deceased persons.

Conclusion

The rise in property fraud in Bulgaria highlights the need for increased vigilance and cooperation between law enforcement agencies, notaries, and individuals involved in property transactions. It is essential to be aware of these tactics and take steps to protect oneself from fraudulent activities.