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News: FSA targets Mortgage scam 'epidemic'

Thu, 14 Feb 08

The FSA is determined to clamp down on mortgage fraud...

The plans, which were revealed by Philip Robinson, of the FSA's financial crime and intelligence division in a speech to the Council of Mortgage Lenders, are intended to crack down both on small-scale fraud as well as larger scams.

Among the measures set to be introduced is the launch of the National Fraud Strategic Authority, which will develop policy incentives to improve the ease with which lenders and authorities can act to prevent fraud.
News of the proposals comes as the FSA is at present conducting a probe into 200 separate scams involving the mortgage market.

Mr Robinson noted: The problem is, in fact, more widespread than had previously been thought. Police tell us these frauds are also carried out by criminals who are involved in other criminal activities such as drugs or people smuggling.

“Money laundering too - there seems to be a lot of criminals who have realised mortgage fraud allows them not only to wash their ill-gotten gains, but make a profit in the process."

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