Crackdown on fraudulent applications

19 May 2008

Credit crunch causing more people to lie on insurance and credit applications

Britons are increasingly lying to obtain loans, mortgages and insurance payouts as the credit crunch causes lending criteria to tighten.

Cifas, the UK’s fraud prevention service, has reported that the number of fraudulent applications made for insurance and credit over the past three years has increased by 24 per cent.

Peter Hurst, of Cifas, said: “The increase in application fraud demonstrates that people are getting into debt earlier, and the credit crunch has diminished their access to finance, they are now resorting to fraudulent applications for funds.”

Two of the more frequent lies told include covering up a poor credit history and lying about the amount of time the applicant lived at an address.

Cifas also reported that female fraudsters are “increasingly alternating between using their married or maiden name on applications, depending on which they feel will yield them the most success” and the average age of fraudsters for both men and women is decreasing every year.

Mr Hurst warned fraudsters about the risks involved with lying on applications.

“Those who think that lying on application forms will give them any advantage need to realise that their efforts are counter-productive. Fraud data sharing means that such lies are easy to detect and, far from enhancing an applicant’s chances, will be detrimental to their application,” he said.

“Telling the truth, even if it is slightly less palatable, remains the best policy,“ he concluded.