Rise in fraudulent car loan applications
19/11/08
According to the global information services company Experian, there has been a big rise in the number of people trying to get car loans fraudulently since the beginning of this year.
During the first few months of 2008, the numbers of fraudulent car finance applications have increased by just over thirty per-cent in comparison to the same timer period in 2007. Fraud in the motor finance sector has amounted to £39.3 million since the beginning of 2008.
“The high value nature of vehicles makes the automotive industry a prime target for fraud,” commented Managing Director of Experian’s automotive division Kirk Fletcher.
He continued, “Over the last 18 months, financial services providers offering loans and mortgages have been tightening their lending criteria. As a result, fraudsters have been turning their attentions to the automotive market and this is reflected by the huge increase in fraudulent car loan applications this year. 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 applications has increased by over four and a half times in the past four years.
