Last week, a study revealed fraud was most often uncovered in the financial services industry and within that sector it was most likely to occur in the mortgage sector.
Of the mortgage brokers surveyed, 41% said they had seen or been aware of attempts at fraud, whether this was applicants exaggerating their income or something more sinister.
Independent financial adviser John Bloomfield said clients often arrived with an incorrect estimation of their income because of poor numeracy.
A former underwriter, he stressed the importance of double-checking all aspects of the application: “You can’t just accept a payslip – you need a bank statement that matches the payslip.”
Regulators have fined companies and top bosses about £1bn for fraudulent activities since 2007 with financial services firms accounting for roughly 70% of the penalties.