It expects a considerable rise of the number of fraud incidents in the mortgage industry as desperate consumers fight for mortgages due to the lack of sub-prime and self-certification home loans.

Nick Mothershaw from Experian says that financial despair caused by the economic crisis is forcing more and more consumers to commit financial crimes for maintaining their way of life.

Consequently, financial organizations could be confronted with continuous fraud attacks during the current year. What is more, the scope and degree of fraudulent attacks are likely to be o nthe rise, and the main task of financial institutions is to ensure they are capable of managing the risk of fraud losses in the most efficient way possible. In addition, Experian has found out that there was a 20% increase in identity fraud activity in the previous year.

The agency warned consumers to keep an eye on their credit documents and requested financial institutions to use more holistic methods when dealing with financial crimes, including data sharing.

The results of Experian’s research came just after the news about the National Fraud Association having united with the Metropolitan Police for arranging a forum aimed at putting an end to fraudulent acts.

One more finding is that Bradford & Bingley (B&B) is making financial arrangements to deal with £388.4m of possible losses in the next financial year after a thorough review of the company’s mortgage book.


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