Mortgage fraud rising

Mortgage fraud rising

Whilst fraud across the wider financial services industry has decreased attempted mortgage fraud has increased.

According to the research by Experian, 39 in every 10,000 mortgage applications were fraudulent in the second quarter of 2012, up from 32 for the same period last year.

Between April and June 2012 there was a 23 per cent increase in attempted fraud.

Experian director of identity and fraud services said Nick Mothershaw said the majority of attacks on mortgage products continue to come from individuals misrepresenting their own circumstances.

Individuals hiding adverse credit information accounted for 24 per cent of attempted frauds, whilst a further 21 per cent came from misleading employment histories having been provided.

Mr Mothershaw said: “Over the course of the last year, we have seen mortgages continue to be targeted at a high rate, with more people trying to misrepresent their personal, employment and credit information on applications to get properties out of their reach.

“At the same time, we have also seen an increase in the number of properties where the use of the property is mis-declared, such as applying for a regular residential mortgage on a buy-to-let property.”

Mr Mothershaw said that effective fraud prevention relies on identification validation.

He said that it was vital that finance providers share comprehensive and thorough information about fraud.

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