The Monetary Conduct Authority (FCA) has launched a brand new marketing campaign to assist shoppers spot and keep away from mortgage payment fraud.
Mortgage payment fraud – the place a shopper pays a payment for a mortgage they by no means obtain – sometimes leads to a £260 loss and such a fraud is extra prevalent in the summertime months as spending will increase.
“For a lot of, summer season brings with it the prospect to calm down and unwind but it surely additionally brings with it monetary pressures – from holidays and festivals to funding days out, or out of time period child-care for folks,” mentioned Steve Good, government director of enforcement and market oversight on the Metropolis regulator. “With inflation, power prices, and rising mortgage payments, this summer season spending will come at a time of enhanced vulnerability for a lot of.
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“For fraudsters, this supplies the right alternative to make the most of folks contemplating make ends meet over the summer season months.”
The FCA’ knowledge discovered that final summer season, there was a 26 per cent enhance in complaints from shoppers who had fallen sufferer to mortgage payment fraud in comparison with 2021.
The fee-of-living disaster is rising the danger of fraud. A brand new survey commissioned by the FCA discovered that over half of UK adults (55 per cent) are additionally extra nervous about private funds this summer season than they have been final 12 months.
Summer time-related bills have been discovered to be essentially the most outstanding monetary worries after rising meals and power prices. In response to the analysis, 24 per cent of shoppers are turning to credit score or loans to fund this extra summer season associated spending, which mortgage payment fraudsters may use as a chance to steal cash, the FCA mentioned.
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The watchdog is elevating consciousness of mortgage payment fraud over the summer season by urging shoppers in search of a mortgage to do the three-step verify to guard themselves from scams:
- In case you are chilly known as or emailed, it might be a rip-off
- If you happen to’re requested to pay an upfront payment, it might be a rip-off
- If you happen to’re requested to pay rapidly or unusually, it might be a rip-off
“Observe our three-step verify for mortgage fraud for spot the indicators of mortgage payment fraud, and if you might want to apply for a mortgage, verify the register to see if the agency is authentic,” mentioned Good. “Don’t get burned by scams in your summer season holidays.”
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