Mortgage fraud rises by 77pc

geneer

I'd bet that mortgage fraud might not have increased all that much,
and its more a case of banks catching those who used to get away with it.

Changed days indeed.

Mortgage fraud has risen by more than 75pc in the space of a year, figures show.
Forty-nine in every 10,000 mortgage applications were found to be fraudulent in the third quarter of this year, a 77pc increase on the same period in 2010 and 53pc more than in the second quarter of this year, according to Experian (Dusseldorf: J2B.DU - news) , the credit agency.
Nick Mothershaw, the director of identity and fraud at Experian, said more than 90pc of mortgage fraud tended to originate from genuine individuals misrepresenting their financial situations attempting to buy property that would normally be out of reach.
Current accounts also continued to be frequently targeted by fraudsters, with 30 in every 10,000 applications being revealed as fraudulent, the survey found. Although this represented an increase of 48pc on the same period last year, it was 30pc lower than in the second quarter of 2011.
Credit card fraud increased for the third consecutive quarter, rising by 10pc on the previous quarter and by 7pc year on year. The fraud rate for credit cards now stands at 13 in every 10,000 applications, the highest level since the period of April to June 2010.
Mr Mothershaw said: "Current accounts continue to be frequently targeted, which combined with the growth in savings account fraud, points towards an increasing trend for deposit accounts to be targeted for money laundering purposes or to then be used as a springboard to more lucrative credit products."
Fraudulent savings account applications increased by 47pc compared with last year, while insurance fraud rose by 28pc.
Loans remained the type of credit least targeted by fraudsters, remaining constant at a rate of six fraudulent applications per 10,000 received.

http://uk.finance.yahoo.com/news/Mortgage-fraud-rises-77pc-tele-566642728.html;_ylt=Am7ZYKC1rmYrVtkcYNVUL7LSr7FG;_ylu=X3oDMTE4MmkzYTJmBHBvcwMyBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNtb3J0Z2FnZWZyYXU-?x=0

shortchanged_2

"Nick Mothershaw, the director of identity and fraud at Experian, said more than 90pc of mortgage fraud tended to originate from genuine individuals misrepresenting their financial situations attempting to buy property that would normally be out of reach."

What the hell does that mean???

That's a bit of a contradiction if I've ever heard one.

Genuine individuals misrepresenting their financial situation!!!!

There is a simple term for it........... it's called FRAUD!!!! Plain and simple.

Pimperne1

Not really fraud though is it? Most of us have probably told a white lie in order to get a job or position. We know we can do it its just that if those who decide these things are left to their own devices they might pick someone less capable.

brit1234

Pimperne1 wrote: »

Not really fraud though is it? Most of us have probably told a white lie in order to get a job or position.

It is clearly fraud by miss representation under the fraud act 2006. I don't know which definition of fraud you are using?

The money program in 2003 showed this isn't a victimless crime either as it forces prices up for later buyers.

Oh I have never lied on a job application form. :mad:

julieq

49 in 10000 isn't exactly a soaring total is it? As usual, when you see a rhetorically inflated number like "risen by 77%" you need to tie it back to the absolute number, and the absolute number is miniscule.

Pimperne1

brit1234 wrote: »

It is clearly fraud by miss representation under the fraud act 2006. I don't know which definition of fraud you are using?

The money program in 2003 showed this isn't a victimless crime either as it forces prices up for later buyers.

Oh I have never lied on a job application form. :mad:

Oh come off it, we all tell the odd white lie, when was the last time you were slightly gentle with your other half just to save his/her feelings? This country was built on people prepared to take a bit of a chance when they were reasonably sure of success, Sir Francis Drake, Nelson, Eddie the Eagle.

The Money Programme in 2003 - that's a long time ago.

homelessskilledworker

geneer wrote: »

I'd bet that mortgage fraud might not have increased all that much,
and its more a case of banks catching those who used to get away with it.

Changed days indeed.

http://uk.finance.yahoo.com/news/Mortgage-fraud-rises-77pc-tele-566642728.html;_ylt=Am7ZYKC1rmYrVtkcYNVUL7LSr7FG;_ylu=X3oDMTE4MmkzYTJmBHBvcwMyBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNtb3J0Z2FnZWZyYXU-?x=0

I know dozens of people who took out self certs pre 2007, not one of them were legal

homelessskilledworker

Grandstands_Frank wrote: »

And how many have been caught? At least those people have a HOME to live in, unlike you homeless un-skilledworker....(as an ex-JP i don't condone illegal behaviour)

Oh Dear!

You meet the saddest people on here.

dtsazza

Pimperne1 wrote: »

Oh come off it, we all tell the odd white lie

Agreed, just not on mortgage or job applications. If the wife asks if her bum looks big that's a different matter.

This country was built on people prepared to take a bit of a chance when they were reasonably sure of success

Great - just so long as they do it with their own money, or the money of investors that they've appraised of the genuine situation.

Even given the context I'm not sure of how you can support those who lie in order to get other people's funds to risk (that wouldn't otherwise have given them), be they Sir Francis Drake or Barry The Boozer.

chewmylegoff

Pimperne1 wrote: »

Not really fraud though is it? Most of us have probably told a white lie in order to get a job or position. We know we can do it its just that if those who decide these things are left to their own devices they might pick someone less capable.

Obtaining funds by deception is clearly fraud. It's not really the same as pretending that you have an extra gcse pass (and in any case that is also a criminal offence).

chewmylegoff

brit1234 wrote: »

The money program in 2003 showed this isn't a victimless crime either as it forces prices up for later buyers.

The lender is the victim.