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Sharp rise reported in car loan fraud

Fraudulent car finance applications up to the end of September were 30.4% higher year-on-year and cost £39.3 million, according to Experian. 

The rise since 2004 has been more than 4.5 times, representing a total value of more than £147 million.

Kirk Fletcher, Experian automotive division managing director, said business should use detection and prevention technologies to reduce the risk.

The high value of vehicles made the industry a prime target for fraud. For 18 months, providers of mortgages and had been tightening lending criteria.  

“As a result, fraudsters have been turning their attentions to the automotive market,” said Fletcher. “This is reflected by the huge increase in fraudulent car loan applications.

August and September saw a drop in activity, but fraudulent applications continued to rise.”

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