Blog

Stay ahead of the fraudsters

Bob Hunt

Bob Hunt

21 December 2020

Another increase in criminal activity may follow the second lockdown

The recent FCA letter to mortgage intermediaries as part of its Portfolio Strategy was interesting for a number of reasons, not least in light of the fact that, a couple of days after publication, the government embarked on a national lockdown policy.

Two key areas highlighted within the letter as significant concerns for the regulator were firms' robustness in being able to counter mortgage fraud - described as an “inherent risk” within the sector - and the risk of cyber attack; which, if we're being honest, may be two sides of the same coin.

This is particularly instructive in terms of what happened during, and immediately after, the first national lockdown earlier in the year. According to Action Fraud, in March there were 22,785 recorded cases of financial fraud perpetrated against consumers, with losses totalling £92.3m. However, by July this had increased to 32,657 cases, with losses up to £356.6m.

Given the large sums involved in the mortgage market, we are always a target for criminals, but this threat has probably jumped during the pandemic and a further increase may follow the November lockdown.

The fraudsters may also feel a market that is said to be booming represents a good opportunity. Most attempted frauds are unsophisticated but throw enough mud at a wall and something may stick, particularly if stakeholders take their eye off the ball or are not diligent with checks.

When we are dealing with large numbers of cases, something may slip through. Advisers should be on top of, for example, their ID, payslip and bank account checking, as well as whether the individuals concerned actually own the property.

As the FCA rightly points out, this is not just a threat of fraudulent applications or attempts to siphon off deposit monies; it is also a cyber threat. Securing client information, data and payment details by hacking firms' systems is an ongoing threat and clearly the regulator has seen enough examples to warrant highlighting the requirements in this area.

Reading this blog counts towards your CPD!

Click here to add this session to your Paradigm CPD log.


19 December 2024

Housing Market: 2025 Outlook


28 November 2024

Suppressing landlord activity won’t automatically improve first-time buyer prospects


25 November 2024

The Co-operative Bank for Intermediaries, streamlining processes and expanding product ranges


21 November 2024

Better off dead? The need for critical illness cover


18 November 2024

What the OBR’s five year forecasts mean for the market


11 November 2024

Exploring the latest in Defaqto Engage: A comprehensive roundup of new features and enhancements.


25 October 2024

Advisers should rethink their regulatory status to keep up with sector changes


16 October 2024

Your Business Matters


7 October 2024

What may impact BTL and Resi markets in 2025?


1 October 2024

Why Gen Z could be the perfect match for protection


30 September 2024

Self-employed mortgages can be easy, if you choose the right lender


26 September 2024

Lenders and regulators must be careful not to add to adviser disillusion


19 September 2024

There may be trouble ahead…


2 September 2024

Source Go: The Modern Answer to the GI Question


29 August 2024

Pre- and post-mini Budget remortgagors need guidance in transformed market


23 August 2024

Guardian's 2023 claims report: a milestone worth celebrating


14 August 2024

Rate cuts are a positive story for advisers


7 August 2024

Mind the gap (s)...


1 August 2024

The mortgage market is set for a teeming H2


29 July 2024

Aldermore are backing more of your clients to go for it


22 July 2024

YOU SAID, WE DID!


12 July 2024

A surge of optimism for the market


9 July 2024

Distribution of Wealth


3 July 2024

Consumer Duty one year on – what might happen next?


24 June 2024

How to increase your protection business


17 June 2024

Consumer Duty will mark new era of continuously changing advice


6 June 2024

Mental Health Matters: Workplace Wellbeing


21 May 2024

Advise or refer? Ensuring the best possible outcomes for your clients


15 May 2024

Darlington Criteria Updates


14 May 2024

And The Wait Goes On


10 May 2024

Cap on broker fees sparks industry debate


1 May 2024

Expect the unexpected


15 April 2024

Ready, set, remortgage!


12 April 2024

How the mortgage market is failing new arrivals to the UK


11 April 2024

A compliance refresh will lighten unavoidable market stress


4 April 2024

What is driving the Specialist Residential and Buy-to-Let markets this year?


4 April 2024

A Government that prioritises owner occupiers at the expense of the PRS


28 March 2024

What is your website for?


19 March 2024

Exploring the value of value added benefits


4 March 2024

Artificial intelligence – friend or foe to advisers?


21 February 2024

RESTRICTIONS LIFTED?


9 February 2024

Trust your own gut when listening to market predictions


7 February 2024

Strategic thinking - Is this time for a new look at how we work as a business?


8 January 2024

The Name's Bond...


Paradigm

THIS SITE IS FOR PROFESSIONAL INTERMEDIARY USE ONLY AND NOT FOR USE BY THE GENERAL PUBLIC.

APCC MemberConsumer Duty Alliance

Paradigm Consulting is a Member of the Association of Professional Compliance Consultants and also the Consumer Duty Alliance.

Paradigm Consulting is a trading name of Paradigm Partners Ltd
Office address: Paradigm Partners Ltd, Paradigm House, Brooke Court, Wilmslow, Cheshire, SK9 3ND
Paradigm Partners Ltd is registered in England and Wales. No.09902499. Registered Office: As above

Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.

Paradigm Protect is a trading name of Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Paradigm Mortgage Services LLP is registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.