The report demonstrated an increased commitment on the part of the national police force to tackling this kind of illegal behaviour.
Central to its impact are the recommendations made for the industry going forward.
Alongside intelligence led initiatives from bodies such as the Financial Services Authority (FSA), it recommends implementing an automated system to check all mortgage applications against official records to include passports and driving licenses, and the registration and regulation of all mortgage intermediaries by the FSA.
The report found that in once instance a faux-broker made a profit of more than £10 million from unsuspecting consumers as a result of mortgage fraud. It also urged more decisive action to be taken by the FSA against those found to be committing such an offense.
Additionally, a large proportion of mortgage fraud is generated by organised crime groups who capitalise on the relative ease with which they can get away with mortgage fraud, using the proceeds to fund drug supply, human trafficking and prostitiution.
Mike Bowron, ACPO lead on economic crime and Commissioner of the city of London police, said that the decision to share this report with the financial industry was designed to raise awareness of the problem and how to tackle it.
“ACPO supports the establishment of a National Fraud Strategic Authority (NFSA) as part of the Government’s Fraud Review Programme, which will significantly assist with coordinating the response of law enforcement and the private sector.
"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.”
It was stressed that organised mortgage fraud could not occur without the criminal activity or negligence of property professionals - with all involved having a role to play in putting an end to it.
Confirmed mortgage fraud currently stands at around £700 million - representing a significant portion of the UK’s annual fraud losses.
Examples cited by the report ranged from false valuations and bogus applications, to inflating property values through the use of fraudulent lease contracts.
Bowron added that the FSA was in the process of establishing a joint intelligence operation with City of London police to monitor mortgage applications and improve knowledge of the problem.
