Mortgage fraud rises following recession
The aftermath of the recession has been blamed for a rise in mortgage fraud as well as other types of fraud across the financial services sector.
A report by credit rating agency Experian shows that mortgage fraud attempts increased by 14 per cent to 32 in every 10,000 applications in 2010.
First-party fraud, where an individual falsely portrays their personal circumstances to obtain services to which they are not entitled, accounted for 97 per cent of cases.
Experian said mortgage fraud attempts typically involved an applicant inflating the prospects or status of their employment and personal finances, or withholding information such as previous addresses and adverse credit history.
Meanwhile, fraud attempts across the financial services sector increased by 11 per cent last year.
Nick Mothershaw, director of identity and fraud at Experian, said: “Fraud in the UK is a growing billion-pound illegal business with fraudsters resorting to innovation and inventiveness, targeting any perceived weaknesses in the system.
“Fuelled by the recessions aftermath, it is likely that financial services providers could see fraud attempts rise during 2011.”
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