Publishing new guidance regarding the threat of mortgage fraud, ACPO’s report highlighted that fraud had significantly increased in 2007 and was becoming more attractive to gangs, who were involved in both fraudulent transactions and the use of property sales for money laundering.
ACPO remarked that fraudsters were reliant on mortgage professionals to be able to operate and reminded brokers, surveyors and solicitors that they were on the front line to protect the market against criminals.
Mike Bowron, ACPO lead on economic crime, said: “Organised mortgage fraud can take many forms and while difficult to measure accurately, remains a significant element of the UK’s annual fraud losses.
Industry groups have started to introduce initiatives with the aim of ‘designing out’ mortgage fraud, and the Financial Services Authority is currently establishing a joint intelligence operation with City of London police.
“Long gone is the notion that fraud is a victimless crime, and through this sort of joint approach we are working effectively to end it.”
The ACPO said that while nearly half of all reported mortgage fraud occurred in London, everyone in the industry needed to be on their guard.
A spokesperson for the Council of Mortgage Lenders, said: “Lenders are already taking the issue of mortgage fraud very seriously and we already support a number of initiatives targeting the practice.”
