There has been a significant increase in mortgage-related fraud, while rental scams have also edged higher, according to Apex Bridging.

The bridging finance specialist says it has carried out fresh market analysis revealing that mortgage-related fraud has increased by 32.8% in the past year.

The company has analysed the number of fraud and computer misuse offences in England & Wales recorded by Action Fraud or referred to the National Fraud Intelligence Bureau (NFIB) between April 2022 and March 2023, and looked at how these numbers compare to the 12 months previous.

The data shows that there was an overall total of 1.1 million cases of fraud between April 2022 and March 2023, a number which is 15.3% higher than the previous 12 months.

The figures also shows that property-related fraud has been a central contributor to this concerning increase.

In the past year in England and Wales, mortgage fraud, in which criminals seek to steal money from a financial institution or private lender through the lending process, has increased by 32.8%, the second-highest increase of all banking and credit industry fraud.

However, the total number of identified cases (1,723) makes it the second-rarest form of banking and credit industry fraud, accounting for just 0.2% of total cases within this sector.

Another common form of property fraud is rental fraud, in which would-be tenants are tricked into paying an upfront fee to rent a property that, more often than not, does not exist.

Rental fraud has seen a smaller annual increase (5.1%) than mortgage fraud, but remains far more prominent with 5,098 reported cases across the year. This figure also makes it the third-most frequent form of advance fee payment fraud, accounting for 11.2% of all cases.

Managing director of Apex Bridging, Chris Hodgkinson, urged property professionals to be wary when clients show signs of urgency without explanation, and also be wary of clients who are reluctant to provide information or answer basic questions.

He commented: “There is so much money involved with property that it’s difficult for career-criminals and chances alike to resist. Whether they’re stealing hundreds of thousands of pounds through mortgage fraud, or a few hundred quid through rental fraud, it’s rife and cases are on the rise.

“Property owners and professionals alike need to do all they can to mitigate the risk of property fraud.

“That means dealing only with respected and trustworthy organisations and service providers, and being awake to any red flags.

“Criminals often succeed because honest people lack caution and due diligence.”