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Hiding adverse credit most common tactic in Q1 as attempted fraud falls

Cases of attempted mortgage fraud fell by 5% during Q1 2012, according to Experian.

The information services firm collects fraud data from over 90% of the mortgage market. It claims attempted mortgage fraud fell by 5% in Q1 compared to Q4 2011, with 35 in every 10,000 applications uncovered as fraudulent in the first three months of 2012.

It found attempting to hide an adverse credit history, misrepresenting employment status and falsifying financial information were the most common tactics employed by fraudsters in Q1.

Overall, the financial services industry saw a 16% quarter-on-quarter hike in attempted fraud, driven primarily by a surge in current account fraud. Around 19 in every 10,000 applications for financial services were found to be fraudulent in the first three months of 2012, up from 16 in Q4 2011.

Nick Mothershaw, UK director of identity and fraud services at Experian, says: “Credit cards have seen a resurgence in identity fraud, while a growing number of financially stressed individuals consider misrepresenting their personal or payment information when applying for insurance, contributing to a fraud upswing in Q1.”

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