Israeli Couple Living Abroad Discovers Fraudulent 1.2 Million Shekel Mortgage on Their Netanya Apartment

A couple from Netanya, Israel, currently residing in Moscow, discovered a fraudulent mortgage of 1.2 million shekels registered on their apartment without their knowledge or consent. The couple alleges their identities were stolen and used by impersonators who forged documents to secure the mortgage through the non-bank credit company Magen Afikim. The mortgage was registered in December 2024, after the couple found their apartment broken into and personal identification documents stolen during a visit to Israel.

The couple, who hold Israeli citizenship and moved abroad years ago, only use the apartment during brief visits to see their daughter in Tel Aviv. In June 2026, a representative from Magen Afikim contacted their daughter claiming the mortgage payments were overdue. Upon investigation, the couple learned of the mortgage and met with Magen Afikim’s controlling lawyer, Eran Naaman, who claimed the mortgage documents were signed using their IDs. The couple disputes this, providing evidence that the identification documents used were forged, including identical photos on ID and driver’s licenses, which is highly unlikely.

This case is at least the second similar incident involving Magen Afikim, where Israeli property owners living abroad in Netanya claim their apartments were fraudulently mortgaged using stolen identities. Another lawsuit filed in the Lod District Court involves siblings living in Germany who allege a 2 million shekel mortgage was fraudulently registered on their Netanya property after a break-in and identity theft. Both cases accuse Magen Afikim and other financial institutions, including Bank Discount and Bank Hapoalim, of involvement.

Magen Afikim has not yet responded to the latest case but previously denied allegations in the earlier lawsuit, stating the matter is under legal review and they will present all relevant facts in court. These cases highlight growing concerns about identity theft fraud in Israel’s credit market, especially involving significant real estate mortgages rather than smaller consumer loans.

The couple demands cancellation of the mortgage, recognition of the bank accounts as fraudulent, and compensation of 500,000 shekels from the defendants. The lawsuits raise questions about a possible network exploiting stolen identities to secure large loans against properties owned by Israelis living abroad.