View more on these topics

Mortgage fraud attempts up 9% in 2012

Ponzi Scam Fraud Gavel Law 480

The rate of detected mortgage fraud rose for the sixth consecutive year in 2012, according to Experian.

Experian’s fraud index for 2012 shows mortgage fraud rose by 9 per cent in 2012 – up from 35 to 38 in every 10,000 applications.

The number of detected frauds per 10,000 applications has risen from 15 in 2006 to 38 last year.

Some 89 per cent of mortgage fraud attempts last year were down to individuals deliberately falsifying information on their applications, most commonly to hide a poor credit history.

Mortgage fraud cases were highest amongst predominantly middle aged, middle and skilled working class individuals. This group accounted for 15 per cent of first party mortgage fraud cases in 2012.

Reported third-party mortgage fraud also saw two significant spikes during the second half of 2012.

Experian UK and Ireland director of identity and fraud Nick Mothershaw says: “Mortgage, current accounts, insurance and cards will continue to come under pressure from fraudsters keen to get their hands on cash facilities.

“It is therefore vital that banks, the financial services sector, online retailers, ecommerce and local authorities maintain their vigilance and accurately assess the likelihood of fraud by verifying the identities of the people they interact with to ensure they are building trusted relationships with legitimate customers.”

Looking ahead, Experian says fraud figures are likely to continue to rise throughout 2013.


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. These are no doubt the type of people who then claim they were mis-sold an interest only mortgage at a late date.

  2. Up from 35 to 38 means 3 additional cases – doesn’t sound as engaging as a 9% rise, does it?

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