Mortgage Fraud increases sharply this year

Over the course of just one year mortgage fraud has jumped by about 77% as many desperate home owners sought out the best mortgage rates by placing fraudulent information on their home loan applications. According to a new report from the credit agency Experian, there was a shocking 77% increase in the amount of people who lied on their mortgage applications during the second quarter of this year when compared to the same period of time in 2012.

Most likely this is due to overzealous applicants who desperately want to be approved for a loan they are under qualified for. Director of fraud and identity at Experian, Nick Mothershaw, stated that almost 90% of all mortgage fraud that is spotted on mortgage applications for fixed mortgages and other types of mortgages is genuine individuals that fudge the figures or misrepresent their finances slightly in an effort to attain approval that normally they would not be able to gain.

With the increase in great rate deals, it is theorised that many people felt that fudging the truth a bit would be the only way they could get approval now for the deals that they wanted, causing the sharp spike as interest in home loans grew Also on the rise however were fraudsters that target current accounts with about thirty of every ten thousand applications that were submitted found to be truly fraudulent according to the survey results from Experian.

This type of fraud that was not dependent on genuine homeowners looking for a great mortgage rate increased by about 48% when compared to figures from last year although it was still 30% than at the beginning of this year which did not mark a shift in the way that banks peruse and verify mortgage applicants.

During the third quarter of 2012, credit card fraud was also on the rise again increasing by about seven percent for the year to year figure and by a full ten percent when compared to the second quarter of 2013. At the moment the credit card fraud rate is about 13 for every ten thousand applications which is the highest level that has been seen since spring of last year.

Mothershaw added that as savings account fraud becomes more popular current accounts are subject to a high amount of fraudulent activity, therefore consumers need to be careful about what they say on applications and who they issue their credit information to.

 

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