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More people 'lying on applications for loans'

More people 'lying on applications for loans'

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More people are turning to "desperate measures" such as lying on credit applications in these times of economic hardship, it has been claimed.

Cifas- the UK's fraud prevention service - has revealed that the amount of people entering false information on application forms for loans or credit cards has gone up.

Analysis of data provided by 270 members of Cifas showed that the number of applicants lying on the forms rose by four per cent over the first three quarters of 2008, when compared to the previous year.

Furthermore, a 19 per cent increase in the amount of fraudulent claims spotted after an application had been approved was reported, indicating that criminals are becoming more "savvy" about lending criteria.

"These trends underline the continuing changes in the fraudsters' methodology," said chief executive Peter Hurst.

Lying about a previous address where an adverse credit rating was recorded was the most common falsehood on the forms.

Earlier this year, UK payments association Apacs launched an awareness campaign on how to prevent credit card fraud.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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