Motor finance fraud cost
lenders £3.2m in the second quarter of 2011, down 0.8% on the
second quarter of 2010.
There were 195 cases of motor
fraud reported during the second quarter, and 835 in the past year,
a fall of 12% on the previous 12 months.
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Working with the Association
of Chief Police Officers’ Vehicle Crime Intelligence Service
(AVCIS), FLA member companies detected more than 2,100 instances of
motor fraud in the quarter, preventing £26.8m of fraudulent
deals.
Almost 30% of motor finance
fraud in the past 12 months was committed using false finance
applications.
However, motor finance
companies have become more adept at spotting fraud, with only one
in every 11 fraudulent applications now successful. As a result,
there were fewer than 250 cases of undetected application fraud in
the past 12 months.
FLA head of motor finance
Paul Harrison said: “Application fraud increases in tough economic
conditions, as people know that it can be difficult to get finance
if they have a poor credit history or an unsteady source of
income.
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By GlobalData“But exaggerating their
income, hiding previous addresses or giving false employment
details to improve their chances of getting a car on finance is
fraud and will be reported to the police.
“We have just entered our
fifth year of sponsoring AVCIS and have recruited additional police
officers to help send a clear message that fraudsters will be
prosecuted.”
The sponsorship will include
money for a further two full-time detective constables at AVCIS,
including one more in UK ports.
“AVCIS has had an exceptional
past 12 months,” said Harrison. “Ports operations have recovered 94
vehicles worth almost £2m.”
DCI Mark Hooper, AVCIS head
of the Vehicle Fraud Unit, thanked the FLA and finance companies
for their contribution which he said would allow the unit to
“increase the number of cars we recover and also send a clear
message to fraudsters”.
