Attempted contractor mortgage fraud was on the increase last year according to the UK’s fraud prevention service, CIFAS.
Prior to 2009, mortgage fraud cases had been on the decline but last year identity fraud and misuse of facility fraud cases rose, although application fraud cases are still falling.
The CIFAS report says that total mortgage frauds rose by 10% last year, whilst identity fraud cases rose by a massive 32%. 25% less people are using false documentation or lying on application forms, the primary causes of application fraud.
A man in his 40s is still the typical victim of identity fraud but there has been an increase in the number of women who are being impersonated.
The CIFAS is blaming some of this increase on unscrupulous valuers who help fraudsters buy a property at a low price and then sell it on at a large profit. Corrupt solicitors are also fuelling the increase.
Personal debt has been a major problem in the UK since the recession began and the value of written off contractor mortgages last year was £984m. In total, UK lenders wrote off £9.3bn in loans to people in 2009.
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