"However, it would have to be used in the right way and complement a human touch, otherwise there is an opportunity for such innovations to help a potential fraudster too.”
This is corroborated by Lock, who says: "AI certainly plays a role and can scan documents to spot inconsistencies. However, our business quality assurance assessors are trained to look at all the documents as a complete picture.
"Advisers collate data from their fact-finding that enables us to view the whole picture – not just those available in the documentation provided to the lender."
Keep on training
Training and continual awareness of potential mortgage fraud is a daily part of advisers’ processes, and for the entire business.
Morton adds: "We would recommend that brokers ensure that they are fully trained to spot and deal with this type of fraud, and continue working with lenders to help prevent it."
Because fraudsters are becoming more sophisticated, advisers and brokers also need to make sure every part of the administration process acts as a gatekeeper to stop fraud.
For this reason, brokers say they work closely with lenders, who can provide insight on the latest trends and data. Lenders can also support businesses with regular training for all staff.
Lock adds: "We also annually test advisers and our head office staff on anti-money laundering, mortgage fraud and ethics.
Phillips agrees that training is "absolutely essential", but also warns experienced advisers to remain vigilant. He says: "We must also move away from the idea that ‘it won’t happen to me’ – no matter how experienced a broker may be."
To this end, in addition to a big focus in Just Mortgages' induction process, the team hosts regular anti-fraud training, joins team meetings and leads company-wide refreshers.
He adds: "At the coalface, we have implemented checklists for brokers to help identify red flags, along with spot checks, packaging checks and observations where required. We actively encourage brokers to refer cases too if something doesn’t look or feel quite right."
Companies can also produce regular newsletters for their brokers and clients, and share examples of what to look out for.
Hollingworth says: "As a firm we have regular meetings with lender partners that will explore shared experiences to help identify where there could be any emerging trends or potential process gaps.
"This communication is extremely helpful for both parties in clamping down further on fraud and enabling us to benchmark progress."
But the best thing to do is to make sure that all fact-finding is thorough.
Phillips explains this is only really done by "asking those ‘soft’ questions around their job, and really discussing their circumstances and situation. Nobody likes to be caught in a lie, and a nosy broker is the best defence against fraud".
