"These figures suggest that the number of mortgage fraud investigations is relatively low, but of course that’s not the full picture"
- Olly Thornton-Berry - Thirdfort
Mortgage fraud in the UK may be going largely undetected despite mounting evidence of rising activity, according to client due diligence platform Thirdfort.
A recent Freedom of Information request submitted by Thirdfort to the Financial Conduct Authority (FCA) shows that only 17 investigations into mortgage fraud have been initiated since 2018.
The FCA’s figures indicate that 2019 saw the highest number of new cases, with five investigations opened. Between 2022 and 2024, enforcement activity continued with three to four investigations each year. No new cases were reported in 2020 or 2021, a lull that may reflect disruption to enforcement work during the pandemic.
However, wider industry data suggests that the risk is growing and that the official numbers likely underrepresent the true scale of the problem.
Data from across the sector points to a more widespread issue:
Mortgage fraud cases rose by 32.8% between 2022 and 2023, according to Apex Bridging
1 in 6 UK adults admit to, or know someone who has, misled a lender to obtain a mortgage, says Cifas
UK Finance revealed that there were losses of £1.17bn to fraud in 2023, and a separate analysis from Apex Bridging suggests mortgage fraud is growing.
Experts also warn that emerging technologies are complicating the picture. The growing use of AI-generated fake documents, along with identity fraud tactics, is making mortgage fraud harder to detect. Cifas has raised concerns that these tools are helping fraudsters outpace traditional verification systems.
Mortgage fraud schemes typically involve forged paperwork, fabricated identities, or inflated income declarations to trick lenders. These tactics pose ongoing challenges to legal and property professionals, who may be exposed to risk through compromised transactions.
“These figures suggest that the number of mortgage fraud investigations is relatively low, but of course that’s not the full picture,” said Olly Thornton-Berry, co-founder and CEO of Thirdfort. “In the UK, in addition to the FCA, the Serious Fraud Office (SFO), local police forces, and the National Crime Agency (NCA) all play a role in investigating cases involving suspected mortgage fraud. Moreover, with fraudsters becoming more sophisticated, and industry data telling a different story, it’s likely that there’s a significant amount of fraudulent activity going undetected.”
