Fraudsters
In today’s mortgage industry, fraudsters are continuously refining their techniques to stay one step ahead, as highlighted by Liz Syms. It is imperative for brokers to disseminate and adopt robust practices in order to effectively detect introducer fraud, scheme abuse, and identity theft.
Some deceitful individuals are now taking their fraudulent endeavours to the next level by meticulously planning three months ahead. They manipulate their bank accounts by crediting them with amounts that they later represent as legitimate salaries, substantiated by fabricated payslips. Brokers must remain diligent and implement various checks to validate the authenticity of reported income. These measures encompass scrutinising payslips for glaring errors such as inaccurate tax codes or discrepancies in year-to-date figures.
Moreover, it is essential for brokers to go beyond the surface and confirm the employer’s legitimacy. This involves verifying the existence of the employer and, in some cases, even conducting direct phone inquiries to ascertain the client’s employment status. As fraudsters evolve, so must the vigilance of brokers in order to safeguard against these sophisticated tactics. It is crucial for the financial industry to stay proactive and collaborative in sharing best practices to fortify defences against the ever-adapting landscape of fraudulent activities.
Introducer fraud
In the ever-evolving landscape of financial deception, fraudsters continue to refine their techniques, making it imperative for brokers to exchange best practices in identifying introducer fraud, scheme abuse, and identity theft. Liz Syms emphasises the need for heightened vigilance within the industry.
Some deceitful actors are now adopting advanced tactics, such as meticulously planning three months ahead by manipulating their bank accounts portraying falsely inflated salaries with fabricated payslips. Brokers must implement a range of stringent checks to validate income authenticity, scrutinising payslips for glaring errors like inaccurate tax codes or misleading year-to-date figures. Additionally, confirming the existence of the claimed employer through thorough checks and even direct phone inquiries can be crucial in verifying the client’s employment status.
In a recent incident, a phone call to a supposedly reputable employer, as indicated on the payslips, revealed that the client had no association with the company. This revelation uncovered the introducer’s complicity in the fraud, preventing the submission of a deceptive case to the lender and safeguarding the broker’s reputation.
Recognising the escalating threat, lenders acknowledge that a substantial portion of fraud emanates from introduced cases, with brokers often unwittingly caught in the crossfire. To combat this, some lenders are contemplating the establishment of a centralised repository of known fraudulent introducers, an initiative that could significantly enhance fraud prevention across the industry.
Establishing direct, personal contact with clients is paramount in navigating these risks. Syms underscores the importance of obtaining documents directly from clients rather than relying on introducers, providing an additional layer of security against fraudulent activities.
As the financial landscape evolves, the industry must remain adaptable and proactive in implementing measures to thwart increasingly sophisticated fraud schemes.
Scheme abuse
The sophistication of fraudsters is on the rise, and Liz Syms emphasises the crucial need for brokers to exchange best practices in detecting introducer fraud, scheme abuse, and identity theft.
Certain fraudsters are now taking elaborate measures up to three months in advance, depositing amounts into their bank accounts, which they later portray as legitimate salary through fabricated payslips. Brokers must conduct thorough checks to validate income, examining payslips for glaring errors such as inaccurate tax codes or year-to-date figures. Verification steps extend to confirming the existence of the claimed employer, including direct communication with the employer to verify the client’s employment.
Additionally, the menace of scheme abuse is growing, often fueled by clients eager to upgrade to a larger property without demonstrating personal affordability. An increasing number of prospective clients openly express their desire for a buy-to-let mortgage on their new residential property, admitting their ineligibility for a conventional residential loan. However, these aspirations often dissipate when the potential consequences of having a buy-to-let mortgage on a residential property are explained.
Vital insights into a client’s true intentions for seeking a buy-to-let mortgage can be extracted through simple, probing questions. Determining whether they are first-time landlords or if the new property surpasses their current residence in size or value provides valuable context. Proximity to the client’s workplace and alignment with the overall property portfolio are also factors to consider. In cases where full assurance is elusive, a straightforward call to the estate agent inquiring about the client’s intentions—renting or residing—can be remarkably revealing. This multi-layered approach is essential in navigating the evolving landscape of financial deceit.
Verification tools
In the realm of financial dealings, fraudsters continue to elevate their tactics, as highlighted by Liz Syms. To combat this rising sophistication, it is imperative for brokers to collaborate and disseminate effective strategies for detecting introducer fraud, scheme abuse, and identity theft.
Some perpetrators go to great lengths, meticulously planning their schemes three months ahead. They manipulate their bank accounts, inflating balances with amounts that are later misrepresented as legitimate salaries through fabricated payslips. Brokers must adopt a proactive stance, implementing a series of checks to validate income sources. This includes scrutinising payslips for glaring errors such as inaccurate tax codes or year-to-date figures. Furthermore, brokers should confirm the existence of the purported employer and, if necessary, make direct inquiries to authenticate the client’s employment status.
Addressing the challenges of scheme abuse and weeding out the fraudsters, it’s acknowledged that lenders possess advanced fraud prevention tools like SIRA and Hunters. However, brokers can leverage cost-effective alternatives to enhance their scrutiny. Platforms like www.192.com enable brokers to independently verify address history by searching voter roll records, shedding light on potential irregularities such as family members residing in buy-to-let properties or examining historical sale prices. 
www.sanctionsearch.com emerges as another valuable resource in the broker’s arsenal. Beyond fulfilling regulatory obligations by screening clients against sanctions and politically exposed person (PEP) lists, this platform offers multifaceted identity verification. Brokers can authenticate identities using passports or driving licenses, verify dates of birth, assess public credit status records (including CCJs), scrutinise bank details, national insurance numbers, telephone numbers, and more.
The nominal costs associated with these systems, ranging from a few pence to a few pounds per search type, pale in comparison to the potential risks of neglecting thorough checks. In the spirit of collective vigilance, brokers are encouraged to share insights into the systems they employ and the advantages gained. By fostering an environment of shared knowledge, the industry can collectively fortify its defences and maintain resilient businesses in the face of evolving fraudulent tactics.
This concludes our topic on fraudsters with Liz Syms.