Commercial Finance Specialists

Commercial mortgage fraud continued to rise in 2009, according to the most recent KPMG Forensic Fraud Barometer.

The cost of commercial mortgage fraud continues to grow in the UK, with the value of cases nearly doubling between 2008 and 2009, according to new data.

There were a total of 31 cases worth £77 million last year, compared to £36 million worth of cases in 2008, the KPMG Forensic Fraud Barometer showed.

In one case, six people were charged with selling properties back to one another in a number of back-to-back deals at inflated prices.

KPMG has called on lenders to scrutinise their mortgage books more closely and reclassify their asset financing portfolios in the wake of the end of the property boom.

Commenting on the findings, KMPG's Hitesh Patel underlined the role of technology in the growth of fraud.

He said: "Computerisation and globalisation have made fraud easier, quicker to carry out and easier to conceal.

"Organised criminals in particular have taken advantage of this. Identity theft is a continual problem, alongside more 'traditional' frauds including insider trading and price-fixing cartels."

The findings are published less than a week after the Financial Services Authority warned commercial brokers and investment firms that keep clients' money and assets to step up improve their management and accountancy records.