Experian reports slight drop in mortgage fraud
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Experian has launched a quarterly fraud index, showing a slight drop in mortgage fraud in Q3 2009.
Following three quarters when around 30 in every 10,000 applications were discovered to be fraudulent, the number attempted in Q3 2009 declined to 25 in every 10,000.
This was still, however, significantly more than the 16 in every 10,000 identified in pre-crunch Q3 2006.
Nick Mothershaw, director of fraud and identity solutions at Experian, says: “Mortgage fraud has seen a substantial increase as a shortage of sub-prime and self-certification mortgages has led to many more people omitting addresses on their applications in an attempt to hide adverse credit history, or – in the case of some self-employed people – to lie about their employment status.”
In the UK, nine of the top 10 banks, nine of the top 13 mortgage providers and eight of the top 10 credit card companies, as well as 18 building societies and 23 insurers, use Experian as their preferred supplier of application fraud prevention tools.
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