Conversion fraud levels – where cars are sold before outstanding
finance balances have been settled – are on the rise, reported the
Finance & Leasing Association (FLA).
“Almost 40 percent of motor finance fraud cases in Q3 2009 were
committed by people selling cars which they did not own,” the
association said. “Around 25 percent of motor fraud involved
applicants giving false information on their finance application
form.”
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In all, motor finance fraud is estimated to have cost the
industry some £3.4 million in Q3 2009; the good news is that the
number of reported fraud cases fell by 29 percent compared with the
same period in 2008, showing that industry efforts to fight fraud
are having some success.
“At least 2,700 cases of attempted motor finance fraud were
prevented in Q3 2009 alone,” the FLA said, saving motor finance
providers around £35 million. This year to date, fraud detection
measures have saved the industry at least £100 million.
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