The number of car finance fraud cases dropped
by 27% year-on-year in the opening quarter of 2012, according to
the Finance & Leasing Association (FLA).
The 169 cases recorded amounted to £2.4m of
outstanding finance on cars in Q1 2012, with lenders and dealers
also preventing 1,687 attempted fraudulent applications, saving the
industry around £20m.
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The most common form of fraud, accounting for
63 Q1 cases, was first-party fraud, involving misuse of a credit
account, including hiring out a car for profit or applying for
credit on behalf of another person without informing the finance
company.
Conversion fraud – selling on a car with
outstanding finance – was second with 58 cases, while there were 36
cases of fraudulent finance applications.
FLA head of motor finance Paul Harrison
commended “the rigorous application of lending criteria by finance
companies and the use of the array of anti-fraud tools” to combat
fraud in the sector.
richard.brown@vrlfinancialnews.com
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