The Finance & Leasing Association (FLA)’s motor finance
members have reported that nearly 2,500 cases of attempted motor
finance fraud were detected and prevented in Q2 2009, cutting fraud
of this kind by 29 percent compared with the same period in
2008.
“If these applications had not been detected, over £30 million
of credit would have been obtained by fraudsters,” the association
added, noting that fraudulent applications had increased in volume
during the period.
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Fraudulent applications that slipped through the net caused
losses of £3.5 million in the second quarter of the year, with the
BMW 3 series the most popular target for scammers.
In all, the FLA said, its members have caught £66 million in
attempted fraudulent transactions since the start of the year.
Application fraud, where customers give false information as
part of the finance application process, accounted for 37 percent
of reported cases, with conversion fraud, where cars are sold on
before any outstanding debt is settled, making up 30 percent of
cases.
“Finance companies continue to work hard to combat financial
crime, particularly in the recession, in order to help make our
roads safer and keep the cost of finance down for customers. Fraud
is not a victimless crime and our work with the police is also
helping to prosecute organised gangs of fraudsters involved in very
serious crimes such as drug trafficking and firearms,” said Paul
Harrison, head of motor finance at the FLA.
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