UKValuation to launch anti-fraud system
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UKValuation is to launch a software system to tackle mortgage fraud which the company says could save lenders over £600m a year.
FraudMark is currently being used by two of the top-tier lenders and is shortly moving into trials with another three major lenders.
The company expects that some systems could go live as early as the new year.
FraudMark works by pre-selecting applications for closer investigation by ranking them according to how likely they are to be fraudulent.
Each application is given a rating between 1 and 999, with a high score indicating that there is likely to be fraudulent misrepresentation somewhere on the form.
James Neave, managing director of UKValuation, says: “FraudMark can be used to sort out the same percentage of applications for review as the lender did previously, but it selects them using a sophisticated pattern-matching model designed specifically for identifying inconsistencies in the application which have fraudulent characteristics.
“An expert examination of an application remains the best way to catch fraud, and by incorporating the predictive ability offered by FraudMark lenders’ investigation processes are able to operate in the most effective and efficient manner.”
UKValuation says that the FraudMark scoring system can analyse all of the data associated with any given mortgage application, which may number up to 150 data fields.
The details analysed include the applicant’s personal information such as job title and salary, as well as the details of the associated third parties such as solicitors, surveyors, brokers and advisors.
Individual fields are then cross-referenced and compared to existing data to generate the ranking.
The software also includes the ability to monitor trends in the market and identify particular third parties which are high risk, as well as highlighting potential fraud rings.
FraudMark will be officially launched at the Mortgage Industry Conference and Exhibition on November 13, to be held at the QE2 conference centre in Westminster.
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