New statistics that have recently been released suggest that there is a correlation between fraud and foreclosures. When reading an article in National Mortgage News, my immediate thought was, "why wouldn't that be a given?" Unfortunately, when people are in their worst situation, there are others that seek them. These fraudsters know that many are hanging by a threat and take advantage of that situation.

So, where is mortgage fraud happening most frequently?

Arizona, California, Florida, Michigan and Nevada have the highest risk of fraud. Along those lines, high unemployment and declining property values are all prevalent in these states as well.

On the other side of the equation, it makes sense that Kansas, Maine, Mississippi, South Dakota and West Virginia (the 5 least risky states) have index values that fall below the national average.

This is attributed to fraud schemes created by people who prey on those who are facing the possibility of losing their houses to foreclosure. One such scheme is a "rescue" opportunity that people, who are desperate, are likely to fall for.

Interthinx, the company who compiled the information, states that their most recent analysis shows that "fraud risk is on the rise again and that fraudsters are migrating to stay ahead of efforts to stop them." California has some of the most risky cities, with 12 of the top 20 in the nation.

Even though the economy seems to be on the upswing and unemployment figures are looking better, there are still a lot of people hurting while attempting to stay in their houses. Others are struggling to make the right purchase. If you are seeking assistance for yourself or a family member, be sure to work with a reputable mortgage broker.