New lenders must lead fight on fraud

29 March 2010

It’s finally happening - the new lenders we’ve heard so much about are starting to hit the market.

For example, Metro Bank has been given its Financial Services Authority permissions. Its target is to have 200 branches in the Greater London area within 10 years.

But it will be far from plain sailing for the new players. We’ve been warned by numerous sources that mortgage fraud is on the rise and new lenders need to ensure they are geared up to meet this challenge.

This is a golden opportunity for them to implement up-to-date systems but their top priority should be ensuring that their data is held and transferred as securely as possible.

Recent cases of data security lapses have shone the spotlight on this and new lenders will want to avoid being the subject of damning headlines caused by opportunistic fraudsters.

Transferring data via the web is becoming an industry standard as speed of response becomes ever more important. But measures must be taken to ensure this process is secure. Implementing systems that are built for the web rather than adapted is the first step.

On top of this, advanced encryptions, IP address restrictions and daily testing by licensed hackers will also help.

New lenders have been vocal about their improved approach to the market. They must now back these claims up with actions that show they really are leading the way in the brave new world.

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