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Experian: Mortgage fraud up 6% in Q3

Ponzi Scam Fraud Gavel Law 480

Fraudulent attempts to obtain home loans rose 6 per cent in the third quarter, according to Experian.

Experian’s latest Fraud Index reveals attempted mortgage fraud rose from 36 in every 10,000 mortgage applications in Q3, 2011 to 38 in Q3 this year.

The global information services company forecasts a “dramatic increase” of 13 per cent in the levels of attempted mortgage fraud in 2013, which would see 43 of every 10,000 applications identified as fraudulent.

Experian director of identity and fraud services in the UK and Ireland Nick Mothershaw says: “Almost 90 per cent of mortgage fraud tends to originate from genuine individuals misrepresenting their financial situations.

“With tougher rules on UK mortgage lending set to come into force in 2014, where lenders will have to put a borrower’s ability to repay under greater scrutiny, it is important that they have the correct tools in place to do this, especially as attempted fraud in this industry is set to increase significantly over the next 12 months.”

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