How to identify and defend against financial crime
In this article, Nick Parker of Aldermore looks into financial crime: how do advisers spot the warning signs, and how do they defend against fraud?
The learning objectives for this article are to:
- To be able to identify the types of fraud relating to mortgage advice
- To be able to identify the enablers of financial fraud
- To be able to name some ways in which an adviser can tackle or prevent fraud
Covid-19 has presented a challenge for all businesses, industries, and individuals. A huge concern throughout the pandemic has been the proliferation of financial crime and the opportunities that have presented themselves to fraudsters. The risk and instances of financial fraud have increased substantially.
During a period of significant disruption and change, such as the coronavirus pandemic, the risk of fraud and money laundering occurring is heightened. Criminals will actively exploit these difficult times to target vulnerable individuals and businesses for financial gain.
The mortgage fraudster
The most likely fraudster is a desperate clients motivated by the end result – the property or remortgage funds. They may be under pressure, perhaps from a family angle or to do with social standing or they may rationalise that this behaviour is not fraud, but merely a short-term solution.
Professional offenders are rare but dangerous. They’re experienced in financial fraud and have a deep understanding of the mortgage industry. They know how to avoid the controls in place, where the most valuable assets are located and how to extract them.
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