View more on these topics

Latent fraud still on books

The FSA is warning that more mortgage fraud is waiting to be uncovered after several years of lenders focusing on quantity rather than quality of business.

Speaking at the Mortgage Business Expo in Manchester last week, head of financial crime policy and intelligence Bob Ferguson said he believes there is more latent mortgage fraud sitting unrecognised on lenders’ books.

He said: “The reason for this is that if the market has a cycle, then fraud is going to have a cycle as well. We have already heard that the focus of lending has been on the volume rather than the quality. The focus has been on business acquisition. In that kind of environment of easy credit – of volume lending – that is a situation in which fraudsters are going to gravitate to your sector.

“The strong impression I have in the work we have been doing is that if you hand fraudsters an opportunity like that they are not going to be slow to move in for the kill.”

He told delegates that the FSA will be revitalising its Information from Lenders project in July. Since its launch two years ago, lenders involved in the scheme have referred 250 cases to the FSA. The scheme currently includes 35 lenders but Ferguson said the FSA wants more lenders to take part actively with the project.

He said: “We are going to establish the ground rules of the scheme with greater clarity. We are going to give lenders better feedback on the cases that they have pushed in our direction. We are expecting to see more cases coming to us.

“We expect to see more lenders pushing cases to us. Where they don’t, we are going to be asking them why aren’t you?”


Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm