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The stakes are too high to simply plod on, legal expert warns as UK mortgage fraud increases by 50%

Property industry professionals have been urged to be extra vigilant in the wake of recent research that highlighted a 50% increase in mortgage and property transaction fraud in the past year.

Aziz Rahman (pictured), Senior Partner at corporate fraud defence specialists Rahman Ravelli, stressed that “the stakes are too high for those in property to simply plod on, oblivious to the risks” as an Experian study revealed that fraud is becoming more commonplace across the sector.

The research estimated that an average of £76,166 is lost in each example of mortgage or property transaction fraud.

With criminals coming up with increasingly sophisticated methods to defraud, Mr Rahman has warned those who are involved in property deals - from estate agents and surveyors to mortgage brokers and developers - to look out for red flags.

Accurate statistics needed to fight fraud, says panel

The Independent Fraud Advisory Panel has called for a review of official statistics to improve efforts to fight fraud. The watchdog wants the government to review the method used to collect official fraud statistics and warns that the new pension reforms could provide another avenue for unscrupulous fraudsters to target the elderly.

Speaking in July, its chairman David Kirk said: "Incomplete statistics leave fraud victims disadvantaged and hide the true level of economic crime in this country. Without a sound understanding of the amount of fraud and who it is hurting, adequate police resources cannot be applied to tackling the problem.

"The system for collecting fraud statistics remains fundamentally flawed, and unless the true value is revealed the Home Office is unlikely to step up its efforts in this area.

“Show me the money!” Met targets proceeds of crime

On 14 November more than 1,300 officers from the Metropolitan Police targeted what were described as "key figures in organised criminal networks, gang members and street-level offenders", as part of the Met's 'total war' on crime. Operation Stimtone 2 was the largest day of action the force has ever put together to tackle criminals specifically by investigating their financial activities.

There were been 175 arrests for a variety of offences, including money laundering, fraud, theft and handling stolen goods. Police had seized around £348,000 under the Proceeds of Crime Act (POCA), including an Audi.

According to a statement from the Met: "Drug dealing, trafficking and prostitution, money laundering, rogue landlords, vehicle documentation fraud, handling stolen goods, conspiracy to defraud charities, as well as seizing assets and confiscating money from criminals using the Proceeds of Crime Act 2002 are on Operation Stimtone 2's agenda."

Police officer jailed for misuse of force intelligence computer

Picture of keyboard for Your Expert Witness story, courtesy of freeimages.co.uk A former Nottinghamshire police officer who misused the force's computer system to access information about friends, partners and associates has been jailed.

Robert Kirk pleaded guilty to one count of misconduct in a public office when he appeared at Derby Crown Court earlier this month. He appeared at the same court again today on 22 October and was sentenced to eight months in prison.

Kirk had been a constable based in the force's intelligence unit until an investigation began two years ago. He resigned at the start of October after admitting the offence.

Money launderers target litigators

Picture of US dollars for Expert witness story The Law Society has issued a warning to its members regarding two areas of litigation that have become the targets of money launderers. The two favourite targets are debt recovery and matrimonial litigation.

According to the Law Society Gazette, guidance to help firms avoid being the victim of fraudsters has been reissued by Chancery Lane.

There is, according to the article, a perception that solicitors engaging in litigation may not be sufficiently vigilant on client due diligence that has lead both money launderers and fraudsters to target law firms.