There has been a significant increase in the number of people seeking to obtain car finance fraudulently since the start of 2008, it has been revealed. New figures from global information services company Experian show that the number of fraudulent car finance applications rose by 30.4 per cent during the first nine months of 2008 compared to the same period in 2007. That increase takes the total cost of motor finance fraud to £39.3 million since the start of the year.
Managing Director of Experians Automotive division, Kirk Fletcher, said, Over the last 18 months, financial services providers offering loans and mortgages have been tightening their lending criteria. As a result, fraudsters have been turning their attentions to the automotive market and this is reflected by the huge increase in fraudulent car loan applications this year. Most recently, applications for car finance have begun to slow down and August and September saw a drop in activity. Despite this, fraudulent applications have still continued to rise. In todays tough trading environment, automotive businesses need to focus on mitigating their exposure to risk and the latest fraud detection and prevention technologies support the sales process when quick decisions on car loan applications are needed.










Paying Too Much?