Cifas’ latest Fraudscape six-month update showed mortgage fraud rose across each of the reported categories.
Mortgage application identity fraud has increased by 36% since last year.
Account takeover fraud – when an attacker gains control of a personal account – sits at 27 cases thus far in 2026, compared to just one this time last year.
Despite Cifas reporting that there was an overall decrease in misuse of facility cases, mortgages bucked this trend, with a 200% increase from three to nine since the same period in 2025.
False application cases were greatest in volume across all fraud categories. There was also an increase in false applications – by 4% to 691 in the first half of 2026.
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David Jones, CEO of Cifas, said: “Perhaps the most concerning is the sharp increase in account take over cases reported by Cifas members in relation to a mortgage. These have risen from just one case in the first half of 2025 to 27 in the same period this year. While the numbers remain relatively small, the rate of growth demonstrates how quickly fraudsters are adapting their tactics.
“These figures reinforce the need for robust identity verification at every stage of the mortgage and home buying process. Criminals are becoming increasingly sophisticated, using stolen or fake identities and compromised accounts to target lenders, intermediaries and consumers alike. Organisations can no longer rely on traditional document checks alone.”
QES adoption protects against AI fraud
In aid of speeding up the home buying process, lenders are turning to digitalisation to improve efficiencies for lenders and borrowers alike.
Nationwide is the only major lender that has allowed mortgage deeds to be signed using a Qualified Electronic Signature (QES). There had been criticism of the slow uptake of QES, which is argued to be robust protection against artificial intelligence (AI) fraud.
Jones added: “With overall fraud cases reaching a record high for the first six months of the year and on course to surpass previous annual records, businesses need to ensure they have effective, technology-driven verification processes in place. Digital identity verification, combined with digital credit checks and screening processes, give firms the best chance of identifying fraudulent activity before it results in financial loss.
“For the property sector, preventing fraud is about more than protecting lenders – it’s about safeguarding buyers, sellers and the integrity of the entire transaction. As fraud volumes continue to rise, investing in digital verification solutions has become an essential part of delivering a secure and efficient homebuying experience.”
