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Attempted mortgage fraud rises 37%
10 September 2010
The number of attempted mortgage fraud cases continued to steadily increase by 37% in the first half of the year, according to Experian. Despite numbers dipping in Q3 and Q4 2009, fraudulent mortgage cases now account for 35 out of every 10,000 applications. This is more than double the 16 in every 10,000 cases identified in Q2 2007 when the economy was more buoyant. Experian found that the majority of fraudulent mortgage applications in the first half of 2010 involved applicants misrepresenting their situations or attempting to hide adverse credit histories in their applications. However, automotive fraud has overtaken attempted mortgage fraud in Q2 2010 to reach its highest level since early 2006, with 47 in every 10,000 applications fraudulent. Experian's fraud report showed that 19 in every 10,000 applications received by financial institutions in the first half of 2010 were identified as fraudulent, 33% more than the second half of 2009. Attempted current account fraud has also proved one of the fastest growing areas, rising from 17 per 10,000 applications to 27 per 10,000 in the last 12 months. Nick Mothershaw, director of fraud and identity solutions at Experian, says: "Our analysis shows that the increase in attempted mortgage and current account fraud underlines that providers need to invest to manage the risk of fraud and its potential impact on profitability." Published by IFAOnline
