What are we doing to combat mortgage fraud?
For banks, it is crucial to avoid mortgage fraud. The key is to test reliability before doing business with a person or party. Each year, mortgage fraud causes tens of millions of euro in financial and social damage. But how can you determine mortgage fraud? And which obstacles do banks face?
What is mortgage fraud?
In mortgage fraud cases, criminals mislead lenders in order to obtain a mortgage. They will forge identity documents, quotes, and invoices from contractors, and salary and income information, like pay slips, statements from employers, or bank statements.
Mortgage fraud often goes hand in hand with other forms of criminal activity, like growing cannabis, illegal rental, and money laundering.
Is mortgage fraud still an issue?
A recent local news report from Omroep West in The Netherlands proves that fraud is still committed these days. On April 23rd, a real estate broker from The Hague was sentenced to six years in prison for an impressive string of infractions: mortgage fraud, laundering, falsification of documents, and swindling.
The man defrauded multiple banks by simply using someone else’s name. The banks approved large mortgages that the suspect obtained based on falsified employer statements and salary slips.
And if that weren’t enough, he also scammed the courts of Rotterdam and Assen or at least attempted to do so. He presented fake documentation of a civil procedure and used a fake name to present the court with a fabricated representation of matters.
Foundation for Mortgage Fraud Prevention (NL)
Banks collaborate with other mortgage lenders in the Dutch Foundation for Mortgage Fraud Prevention, or Stichting Fraudebestrijding Hypotheken (SFH), to combat and prevent fraud. The foundation detects trends and developments related to fraud in numerous ways:
- SFH Register
- Analysis
- Awareness
- Best Practices
Virtually all mortgage lenders in The Netherlands are affiliated with the SFH. Unfortunately, it remains complicated to avoid mortgage fraud and the current solutions don’t appear to be able to solve every issue.
How do you avoid mortgage fraud?
Aside from shedding light on trends and developments when it comes to fraud, banks need to put thought into fraud prevention. Here’s where we can help.
How? We develop systems that prevent identity theft, check credit responsibility, and perform online acceptance through software. The Consumer Check is one element that can be applied to various fields and industries. Are you curious how the consumer check will work for your company? Contact one of our specialists!