While he was quick to applaud the moves the intermediary market has already made to combat fraudulent activity, Malone warned that fraudsters would quickly move on and find new sectors to target if left unchecked.
According to Malone, areas of particular concern include property clubs, distressed property, family/relative sales, buy-to-let and bridging loans.
Malone commented:
“Within any sector that is unregulated there is an increased likelihood of fraud and that is what we are seeing with the bridging loan industry. We have also seen fraud become a big issue within networks and whereas previously this would have been monitored by compliance teams, we are now seeing people employed specifically to deal with crime and fraud matters. While brokers themselves may be doing everything within their power to sniff out fraudulent activity, it is important that they are observant, know their introducers and check the solicitors they deal with.”
Malone also urged delegates to cross-reference apparently genuine identification documents such as passports and recounted one example where an individual had obtained six different driving licences using variations of their real name.
He also reminded brokers that simple activities such as comparing signatures could be the first way of identifying errant activity.
