Instances of mortgage fraud in the UK have risen for the fifth year in a row, new figures have revealed.
Provided by global information services company Experian, the findings showed bogus applications for home loans increased by eight per cent across 2011, with 34 in every 10,000 found to be fake.
This was markedly up on the 15 in every 10,000 recorded in 2006, while the overall rate of fraud at the time of application throughout the UK’s financial services sector escalated by four per cent over the 12-month spell.
On top of the mortgage fraud increases, the research also pointed to considerable growth in incidents relating to insurance and current account misdemeanours.
Nick Mothershaw, UK and Ireland director of identity and fraud at Experian – which provides analytical tools and data to clients that are spread in 80 countries around the world – said: “About 70 per cent of financial services application fraud in the UK fraud is down to first parties misrepresenting their circumstances.”
Mr Mothershaw explained this form of fraud often emerges from segments of society that are financially-stressed.