Mortgage-related fraud increased across every category tracked by Cifas during the first half of 2026, prompting calls for firms to strengthen digital identity verification throughout the homebuying process.
The Fraudscape six-month update recorded 691 false mortgage applications between January and June, up 4% from 663 during the corresponding period last year.
Mortgage identity fraud increased by 36%, from 25 to 34 cases, while mortgage facility misuse rose from three to nine cases.
The sharpest proportional increase occurred in mortgage account takeover, where reported cases jumped from one to 27, although volumes remain comparatively small.
FALSE DOCUMENTS BECOME MORE SOPHISTICATED
The increase in false mortgage applications contrasts with a 26% decline across all sectors, where filings fell from 8,576 to 6,368.
Cifas said members continued to encounter false bank statements, wage slips and identity documents supporting financial applications.
The organisation also highlighted concerns about synthetic identities, AI-enabled impersonation and increasingly sophisticated digitally manipulated documents.
Across the wider loans sector, false application cases increased by 33% to 895, driven by personal and company unsecured lending.
“Fraudsters are quickly adapting their tactics.”
David Jones (main picture, inset), CEO at Click2Check, said: “The latest Cifas fraud figures highlight a worrying trend for the property market, with mortgage fraud increasing across every category.
“Identity fraud linked to mortgage applications has increased by 36% and false mortgage applications are also continuing to climb. Perhaps the most concerning is the sharp increase in account takeover cases reported by Cifas members in relation to a mortgage.
“These have risen from just one case in the first half of 2025 to 27 in the same period this year. While the numbers remain relatively small, the rate of growth demonstrates how quickly fraudsters are adapting their tactics.”
RECORD FRAUD FILINGS
More than 220,000 cases were recorded on the National Fraud Database during the first half of 2026 – the highest number reported for the opening six months of a year.
Total filings increased by 1% to 220,041 and are on course to exceed the record volumes recorded during 2025.
Identity fraud remained the largest category, increasing by 9% to 129,490 cases and representing 59% of all filings.
Account takeover cases rose by 5% to 39,878, while unauthorised SIM-swap cases surged by 402%. Money-mule filings increased by 69% to more than 13,000.
DIGITAL CHECKS ‘ESSENTIAL’
Jones said: “These figures reinforce the need for robust identity verification at every stage of the mortgage and homebuying process. Criminals are becoming increasingly sophisticated, using stolen or fake identities and compromised accounts to target lenders, intermediaries and consumers alike.
“Organisations can no longer rely on traditional document checks alone.
“With overall fraud cases reaching a record high for the first six months of the year and on course to surpass previous annual records, businesses need to ensure they have effective, technology-driven verification processes in place.
“Digital identity verification, combined with digital credit checks and screening processes, gives firms the best chance of identifying fraudulent activity before it results in financial loss.
“For the property sector, preventing fraud is about more than protecting lenders—it’s about safeguarding buyers, sellers and the integrity of the entire transaction.
“As fraud volumes continue to rise, investing in digital verification solutions has become an essential part of delivering a secure and efficient homebuying experience.”
