Fake payslips still available online
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Websites offering fake payslips are still thriving, despite a reported fall in the number of borrowers using fake documentation to commit mortgage fraud, Mortgage Strategy has found.
Figures from CIFAS – the UK’s fraud prevention service – show mortgage fraud increased 18% in 2010, with 69% of fraudulent business introduced by brokers.
There were 3,542 mortgage frauds recorded in 2010, up from 3,004 in 2009.
But CIFAS claims mortgage frauds using false or altered documents stating false income, or providing false employment details have decreased from over two-thirds of mortgage application frauds in 2009 to less than half in 2010.
But a quick search on the internet brings up dozens of websites offering fake documents and Mortgage Strategy was easily able to buy three months’ fake payslips for £40.
They were emailed to us within two hours and we received the originals within two days. All we were asked to supply was our name, company, National Insurance number and earnings.
John Malone, executive chairman of PMS and brokers’ representative on the National Fraud Authority’s mortgage fraud forum, says lenders are spending more time checking documentation because they are doing less lending, but he says it is still a major problem.
Malone says: “At the fraud meetings I go to we are aware that there are organisations that are still creating these documents.
“We are trying to alert brokers to how easy it can be to commit fraud using these types of documents.”
Malone looked at our payslips and said that although they may have been accepted by lenders a couple of years ago there were a few inaccuracies which should ring alarm bells.
He says things such as a change in font size and no tax reference number on the slips should raise questions with lenders.
He recommends brokers only carry out business face-to-face with the clients.
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Readers' comments (10)
Robin | 14 Mar 2011 9:55 am
I have been repoting firms like this for over 15 years. Never has one been sorted out! Nobody seems interested, especially the FSA!!
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Anonymous | 14 Mar 2011 10:38 am
I have seen some of these and you cannot tell at first glance, however some are so bad..... lenders should look at bank statements showing salary being paid in, and what's wrong with a bank reference. As for only doing business face to face, would you really expect an adviser to travel 1000 miles roundtrip to do a Mortgage, I am in London, and have some clients in the far north, and in cornwall, no we have to take some stuff on face-value
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Anonymous | 14 Mar 2011 10:47 am
Like Robin, I reported someone to the FSA, I gave them chapter and verse about what he was upto. Did they do anything about it, not a chance, he is still out there doing his deeds.
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Keith | 14 Mar 2011 10:49 am
It's interesting that lenders accepted these a few years ago but now they're actually looking at them (heaven forbid!) they're spotting the fakes.
I think lenders who use proper underwriters will spot the fakes more often than not. The answer is for lenders to use Underwriters, rather than "inputters" - computers and credit scoring don't spot fakes!!
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Anonymous | 14 Mar 2011 10:50 am
anonymous 10.38 am.
No,no,no we cannot go back to bank references. It's bad enough trying to get a clients statment from a branch without them having to be forced to sit down with their salesmen. Can you imagine the pressure the clients would be under when a bank reference arrived!
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David Forrest | 14 Mar 2011 11:21 am
This is not actually an issue for the FSA, its one for the police. The problem is these companies are based overseas, therefore the UK authorities have no jurisdiction to take action. Even if there was something the UK authorities can do, its still not the role of the FSA. It would be the OFT and the police.
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David Forrest | 14 Mar 2011 11:21 am
This is not actually an issue for the FSA, its one for the police. The problem is these companies are based overseas, therefore the UK authorities have no jurisdiction to take action. Even if there was something the UK authorities can do, its still not the role of the FSA. It would be the OFT and the police.
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Paul | 14 Mar 2011 11:38 am
Banks should cross check payslips with HMRC. If there is any discrepency then either the client is lying to obtain the mortgage, or lying to HMRC with regards to taxable income. HMRC should be very interested in doing this as the latter may flag up unpaid taxes, which in these times it should be desperate to collect.
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Anonymous | 14 Mar 2011 2:12 pm
It's simple as someone said earlier. Request an original bank statement to supplement the payslip. Ensure this is requested over a 3 month period. If still in doubt, verify employment with the applicants HR dept or request P60's.
If a fraudster passes all those cheques then good luck to them.
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Gray Haired Underwriter | 16 Mar 2011 2:23 pm
There have been fake documents in the mortgage marker for a long time and anyone with a decent pc can produce these sorts of documents. And anonymous should know that far too many bank statements come from on-line and are printed by the borrower - anyone with half an ounce of sense would amend these before having them certified as true copies of the originals. Try getting original bank statements and the borrowers and brokers react with incredulity.
The simple fact is that good underwriters who are used to dealing with these types of apps will pick up a lot of these frauds but some of these docs are so good that they they get through - the HMRC route is the best one if I wasn't for the mountainous forms that have to be filled in to get their co=operation
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