While instances of mortgage fraud are falling, down from 31 in every 10,000 in 2012, the sector still sees the highest rate of fraudulent applications across financial services.
Attempts at hiding adverse credit (23%) was still the most common type of fraudulent behaviour, the misuse of mortgaged property and hidden buy-to-let were two of the areas to see a biggest rise compared to the previous year.
Nick Mothershaw, UK&I director of identity & fraud at Experian, said: “The financial services industry is making progress in combatting fraud, and it is encouraging that more fraud is being detected and prevented than ever before.
“However we should not be complacent. Although better systems are in place both lenders and consumers need to remain constantly vigilant, especially against the rising threat of identity theft.”
Experian also reported a significant rise in detected and prevented fraud attempts in the first half of 2013.
According to Experian’s latest Fraud Index, fraudulent applications for credit cards saw the largest rise in 2013 with 14 in every 10,000 applications in H1 2012 rising to 25 in every 10,000 in H1 2013 (January – June 2013).
Fraud attempts have also risen across insurance, which reached peak levels in 2013, as well as savings, loans and automotive finance.
The analysis also shows that identity theft now accounts for 46% of all fraud attempts, compared with just 27% last year, showing that identity theft is a significant and rising threat and that both lenders and consumers need to remain constantly vigilant.
Mothershaw said: “Our analysis also suggests that fraud is increasing in major areas such as credit cards, insurance, savings accounts and automotive finance.
“Organisations can take simple steps to mitigate risk so that they crackdown on individuals misrepresenting their personal information while also preventing third-party identity fraudsters seeking to open accounts as a springboard for other, more lucrative credit products.
“At the same time, consumers need to keep a close eye on their personal credit information and, where possible, take every practicable step to avoid becoming a victim to identity theft.”
