Let's work together to stamp out fraud

19 July 2010

To start turning the corner on mortgage fraud, cross-industry collaboration is key.

Industry bodies, lenders, surveyors, brokers, solicitors and law enforcement authorities must all be aligned when it comes to formulating new reporting methods and incorporating detection tools and systems so the industry can create a high barrier for fraudsters to climb.

To combat this menace it is vital to have input from lending institutions not only on losses but also on attempted frauds. In this way, we will get a clear picture of the ways fraudsters are using to manipulate the system.

As it stands, the true scale of mortgage fraud is unknown and studies undertaken by independent organisations continue to conflict in their calculations of losses.

At the recent Council of Mortgage Lenders’ Mortgage Fraud Detection Seminar the message was clear from speakers representing the Solicitors Regulation Authority and the National Fraud Authority that willingness to share data has not been universal.

Ultimately, when it comes to fighting mortgage fraud the only way forward is for the industry to work in partnership to share information on best practice and collectively investigate cases.

Speaking at the seminar Tracey Carr, financial crime manager at Santander, summed up the situation by saying that “lenders acting in isolation will not eradicate mortgage fraud and industry-wide cooperation is vital if the threat of fraud is going to be beaten”. I couldn’t agree more.

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