Figures released today by the Finance and Leasing Association show that almost 2,500 cases of attempted motor finance fraud were prevented in Q2 2009. If these applications had not been detected, over £30 million of credit would have been obtained by fraudsters. Industry action is helping to stop criminals, make roads safer and save customers money. So far in 2009, motor lenders have prevented over 5,700 fraudulent deals worth £66 million.
Fraudulent deals caused losses of £3.5 million in the second quarter of this year. But this was 29% down on the level of fraud seen in the same period last year. The most common car acquired through fraud was the BMW 3 Series. According to FLA figures, London remains the nation's fraud ‘hotspot'.
The most common fraud offence was application fraud - where customers give false information on their application, such as overstating their income or failing to disclose an address linked to poor credit history. Application fraud accounted for 37% of all cases. 30% of FLA fraud cases were the result of ‘conversion' where customers sold cars on finance before settling the outstanding debt.
Paul Harrison, head of motor finance at the FLA, said: "FLA members' efforts have prevented £66 million worth of motor fraud in the first half of this year. Finance companies continue to work hard to combat financial crime, particularly in the recession, in order to help make our roads safer and keep the cost of finance down for customers. Fraud is not a victimless crime and our work with the police is also helping to prosecute organised gangs of fraudsters involved in very serious crimes such as drug trafficking and firearms."
