You are here: Home - Household Bills - News -

ID thieves target mortgage applications 

Written by:
Cases of ID thieves targeting mortgage applications reached a four-year high in the first quarter of the year, new research reveals.

The latest fraud report by information services company Experian said third party fraud historically accounted for around 4% of all mortgage application fraud but this figure rose to 6% in the January to March period, the highest since 2012.

Nick Mothershaw, fraud expert from Experian, said: “The increase from 4% to 6% is worrying. This is because third party mortgage fraud is very complex and not as easy to commit on a large scale as fraud related to other financial products, such as current accounts, can be.”

In many of the cases detected by Experian, fraudsters had either hacked databases or intercepted emails between individuals and their solicitors.

Despite the increase in ID theft in mortgage fraud, overall mortgage fraud attempts dropped significantly in quarter one, compared with the same period last year, from 83 in every 10,000 applications to 66 in 10,000 – the biggest quarterly fall seen by the mortgage industry in the last three years.

Current accounts continued to top the charts for fraudulent applications at a rate of 126 in every 10,000 applications, up from 81 in 10,000 in Q1 2015.

Credit card fraud attempts continued to rise to 46 in every 10,000 applications from 33 in every 10,000 in the first quarter of 2014.

The overall fraud rate for the first three months of 2016 increased to 54 in 10,000 versus 45 in 10,000 a year earlier.

Mothershaw said: “Our latest fraud rate represents the amount of fraud that has been detected and prevented. Fraudsters are not going to stop looking for new and evolving ways to scam people.

“Fraud itself is viewed by many organisations as one of the biggest threats they are facing.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Halifax ups maximum age for borrowers

Halifax will increase its maximum age for borrowers at the end of the mortgage term to 80-years-old from Monday 9...