Don't let your firm be used by rogues

12 July 2010

Barely a week goes by without a press story about a broker being fined or struck off the Financial Services Authority.

This may lead you to think that mortgage fraud is spiralling out of control, but my experience tells me that the increase in the number of fines and bans is more likely to be down to improved detection by the regulator.

But brokers should ensure that proper controls are in place to stop themselves being inadvertently used in financial crime rings. Ignorance is no defence, as I’m sure some found to their cost.

Lenders are constantly being faced with sophisticated criminals bent on defrauding them, and we too should remain vigilant and have appropriate processes and controls in place to ensure we don’t become victims.

Professional fraudsters are the most dangerous type. They tend to operate in rings that incorporate a mixture of customers, solicitors, valuers, estate agents, house builders and brokers.

In fact, this is the primary reason we operate a controlled distribution, valuation and solicitor panel - it makes it difficult for criminals to penetrate.

We also have some technological solutions to help us detect financial crime, as well as a team with responsibility for detecting attempted fraud.

Financial crime is not something we should become paranoid about but we must be vigilant and do what we can to ensure we are not targeted.

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