Since the start of the year, fraudulent applications for car
finance have risen “sharply”, data provider Experian has
warned.
“The number of fraudulent car finance applications detected
during Q1-Q3 2008 rose by 30.4 per cent, compared to the same
period in 2007. Since the beginning of the year, motor finance
fraud has totalled £39.3m,” Experian reported.
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Managing director of Experian’s Automotive division, Kirk
Fletcher said that the rise could at least partially be explained
by mortgage lenders and loan providers tightening their criteria,
causing criminals to turn their efforts to car loans. “The high
value nature of vehicles makes the automotive industry a prime
target for fraud,” Fletcher said.
He added: “Most recently, applications for car finance have
begun to slow down and August and September saw a drop in activity.
Despite this, fraudulent applications have still continued to
rise.”
The total number of fraudulent car finance applications has
risen over four and a half times in the last four years,
representing a value of over £147m, Experian noted.
Jo Tacon
