In the United Kingdom, ""Experian Identity & Fraud"":http://www.experian.com/ is reporting another annual uptick in mortgage fraud, recently revealing statistics that showed an 8 percent rise in incidences of fraud during 2011.[IMAGE]
The company's survey marks the fifth consecutive year during which the rate of mortgage-related fraudulent activity has increased.[COLUMN_BREAK]
Experian's findings indicate that an estimated 34 of every 10,000 mortgage applications contained false information in 2011. The results of the study represent a significant elevation of numbers seen in 2006, when only 15 of every 10,000 applications was believed to have been fraudulent.
Conveying the most common types of mortgage fraud seen in the U.K. during the past year, Experian noted that 90 percent of fraudulent activity stemmed from individual borrowers attempting to misrepresent their personal information on applications. Experian's report demonstrated that falsifying employment status, providing incorrect financial information, and hiding an adverse credit history were the top three methods borrowers used to commit fraud.
Nick Mothershaw, director of identity and fraud for Experian in the U.K. and Ireland said of the survey, ""About 70 per cent of financial services application fraud in the U.K. fraud is down to first parties misrepresenting their circumstances, and the products such as mortgages and insurance that have seen fraud soar over the last year have a significant first party fraud element to them. This kind of fraud tends to originate from financially stressed segments of society.""