Mortgage fraud attempts surge in Q3

Yuan Phoon

December 8, 2011

Some 49 in every 10,000 mortgage fraud applications in the third quarter were attempted frauds, revealed Experian.

This was an increase of 77% over the same quarter in 2010 and 53% more than in Q2 2011.

Nick Mothershaw, director of identity and fraud at Experian UK & Ireland, said: “More than 90% of mortgage fraud tends to originate from genuine individuals misrepresenting their financial situations attempting to buy property that would ordinarily be out of reach.”

Current accounts also continued to be frequently targeted by fraudsters, with 30 in every 10,000 applications being revealed as fraudulent.

This represents an increase of 48% on Q3 2010 but is a 39% decrease from Q2 2011.

Mothershaw added: “Current accounts continue to be frequently targeted, which combined with the growth in savings account fraud, points towards an increasing trend for deposit accounts to be targeted for money laundering purposes or to then be used as a springboard to more lucrative credit products.”

Insurance fraud fell by 8% quarter-on-quarter to 11 in every 10,000 applications. This was, however, a 28% increase on Q3 2010.


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