Attempted fraud in the financial industry has rises sharply

Attempted fraud in the financial industry has risen sharply since the start of the cost of living crisis began in late 2021.

Fraud prevention provider Homeppl has confirmed this week that 91% of the fraud they flag in applications stems from applicants attempting to conceal their true financial status by modifying original financial documents or creating completely fake ones.

Research conducted by the service provider shows that on average it can cost around £44,000 to lenders who provide financial access to risky consumers. This includes legal fees, damages, and recovery costs. When combined with the lost value of a fraudulent contract, this can be financially detrimental to both the lender and the consumer.

Alexander Siedes, CEO and Founder at Homeppl, said “We’re in the middle of an economic crisis where demand for loans is high, rent prices are high, the cost of goods and services and gas is high and because of that, we have seen people falsify their financial applications to secure financial access to loans and credit in a difficult market.”