Mortgage fraud costing UK one billion a year
March 4, 2010
Mortgage related fraud is a problem that has caused concern for some time, but over recent years, with the credit crunch and mortgage drought causing so many problems, this type of fraud along with some other types of fraud has become increasingly prevalent. 
It has been estimated recently that total losses that can be attributed to some form of fraud in the UK come in at a whopping £30 billion, and out of this around £1 billion is lost in mortgage related fraud alone.
The data was released by the National Fraud Authority released the data, and officials from the group said that the estimate was more comprehensive than the last estimate, which was released in 2007. The new estimate relating to fraud costs included previously unpublished fraud figures, which officials believe make the figures more accurate than those that were estimated in 2007.
Over the hardest hit industry in terms of fraud was the financial sector, which will come as no surprise to many given the chaos that has been caused by the credit crunch, recession, and difficulties in the mortgage and financial markets. Around £3.8 billion in losses is said to have been seen by the financial sector, and this includes £1 billion if mortgage related fraud and £2 billion in insurance related fraud.
The Commissioner of the City of London Police stated: “We always believed that the true cost of fraud could be much higher than previous estimates. It is vital that we ensure that the methodology used to measure the cost of fraud on the UK economy is as up to date and as comprehensive as is possible. As head of the national lead force for the investigation of fraud I know the destructive effects that this type of crime can have. We look forward to continuing our work with the NFA and the rest of the UK’s Counter Fraud community and building upon our recent successes.”
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