KPMG Files Report Showing Mortgage Fraud Has Declined in the UK for 2010

The financial group KPMG has recently issued an in-depth report which details the number of fraud cases in the United Kingdom in 2009 and 2010. The fraud cases which were registered by complainants were fewer in 2010 than in years past, signalling a success for those in charge of curbing fraud in the UK. Indeed, since the number of fraud cases has declined, the amount of positive financial action in the market has increased.

The report which was recently filed by financial group KPMG has been given the apt title of Fraud Barometer. In this report, the number of cases of fraud reported in the UK dropped to just thirteen cases from the number of twenty-one during the same period the previous year. Specifically, from July to December in the year 2009, there were 21 cases of fraud reported. From July to December in the year 2010, there were only 13 cases of fraud reported. The decrease can also be thought of in terms of monetary terms, and this offers a more specific look at the situation. In pound amounts, 2010 saw just £12.5 million in fraud case claims during the months July through December. In 2009, the same period from July to December saw the pound amount of claims made to be around £96 million. While this seems like good news, there was trouble during the rest of 2010 which has never been seen before in the history of mortgage fraud cases in the UK.

During the other months of the year, one particular man committed fraud, not having to do with mortgages, but having to do with green technology and the grants given to people pursuing this area of research and industry.  This man, aged forty-eight, defrauded the government for over £100 million when he claimed false tax breaks for his firm. His firm was involved in green technology research, but did not qualify for the huge tax breaks which were given to it.

Other information from KPMG about the state of mortgages in the UK showed that there was an overall decline in the latter half of the year. This may be attributed to the fact that private institutions are taking matters into their own hands by dealing with the fraud cases directly, instead of reporting them to authorities.

Most believe that the largest threat of mortgage fraud in the UK can be found to have been committed by professional mortgage criminals. These people have perpetrated large amounts of fraud on the system including one case involving a £200 million claim by the director of a firm in the city who moved large amounts of taxpayer money out of the country. With this money, the owner set up a foreign exchange and arbitrage business with which he hoped to raise money for other ventures, including a money laundering operation for other such people.

Overall, mortgage fraud is down, and this is good news for mortgage companies and those who have mortgages.