More than six in 10 homebuyers are still sending copies of their identity documents by email despite growing fraud risks and the availability of secure digital verification tools.
Latest research from Credas Technologies, a SmartSearch company, found that 62% of UK homebuyers share passports or driving licences via email, while 10% use WhatsApp to transmit documents during the mortgage and homebuying process.
The findings are significant given the strict anti-money laundering (AML) and know-your-customer (KYC) checks required in mortgage transactions.
Industry experts warn that unsecured document sharing increases the risk of interception, impersonation and fraud.
MAJOR CONCERN
At the same time, 86% of respondents said having control over when and how their personal data is shared is important or very important, while 32% cited lack of transparency around the verification process as a major concern.
Credas said the results highlight a widespread lack of understanding about how certified digital identity systems work and why they offer greater protection than traditional document exchange.
PROTECTED CONTROL
Neil Williams (main picture, inset), CTO at Credas, said: “The problem isn’t that the public doesn’t trust digital identity – it’s that very few have explained what it actually is or how it protects them better than ‘traditional’ methods.
“As a provider certified against the UK Government’s Digital Identity and Attributes Trust Framework, we know that the technology exists to give people the control and protection they’re asking for. However, if businesses don’t explain what they’re offering and why it matters, consumers will continue falling back on insecure alternatives, including emailing documents.”
DUTY OF CARE
And he added: “Education isn’t marketing, it’s a duty of care. Businesses rolling out digital verification have an obligation to explain what they’re asking people to do and why it’s safer. Without that, we’re leaving consumers vulnerable to fraud and holding back the solutions designed to protect them.”
Credas is urging mortgage lenders and brokers to improve communication with borrowers about digital ID processes, warning that closing the knowledge gap is essential to strengthening fraud prevention across the homebuying journey.
