BANKRUPT BANKER
Credit reference agency Experian said seven out of every 10,000 personal loan applications made during the third quarter were fraudulent, 57% more than during the same period of 2009.
Nine out of 10 instances of loan fraud involved so-called first person fraud, under which consumers try to hide adverse credit history or misrepresent their employment status in order to qualify for products they would not otherwise be able to get, up from just 35% a year ago.
But while loans saw the biggest jump in fraudulent applications, motor finance accounted for the highest number of bogus applications at 41 out of every 10,000, a 42% year-on-year increase.
The group said this area of lending continued to be the most targeted area by fraudsters, as it involved high value assets that could quickly be converted into cash, while the complexity of the sales process made it an easier target than other types of financial product."
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