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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: Fraud and identify theft 'growing threat' to $1.7 trillion real estate business. Banks are the Prime Fraudsters

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Fraud and identify theft 'growing threat' to $1.7 trillion real estate business

Australian Financial Review Mar 9 2018 3:30 PM

Duncan Hughes


Mis-selling, fraud, 'out of control' identity theft and hacking are a growing threat to the nation's $1.7 trillion real estate sector, according to analysis by banking and technology specialists.

A mix of antiquated and inadequate digital processing, regulatory gaps, sophisticated hackers, fraud and absence of manual systems are creating unprecedented levels of risk to borrowers and lenders, they claim.

"It is so easy to steal identity that it has got out of control," said Geoff Stockton, managing director of The PRM Group, which provides systems and support for verifying ID.

Alex Tilley, a senior security researcher at SecureWorks, a listed digital security specialist, said email hacking between home buyers and estate agents, which is a big problem in the US, is taking grip in Australia.

Mr Tilley said local "mules" – who commit the original theft – are transferring the money out of Australia to south-east Asia where it is moved on to other unknown locales to avoid detection.

The scam typically targets the email accounts of estate agents, which are used to send emails with instructions for home buyers to deposit their money into the wrong bank account. Emails can include contracts of sale and trust account details for payment of the deposit to a selling agent.

Mr Tilley said an increase in detected offences suggests criminals are increasingly confident about the strategy and increasing attempts and varying strategies to other types of transactions.

"There is a massive amount of money being stolen often because money in being transferred without a telephone call to verify the account and confirm transfer instructions," he said.

Cyber criminals are selling forged Commonwealth Bank of Australia and Westpac Group credit card, bank and investment statements for between $6 and $24 with the promise of delivery anywhere in the world within 24 hours, according to advertisements on the dark web, which has been compared to an e-Bay for criminals.

Accountants, solicitors and real estate agents are also exempted from tough anti-money and counter-terrorism laws, which creates a valuable loophole for laundering money, Mr Davies said.

Investment bank UBS is also warning that "factually inaccurate mortgages" are a "very significant" risk facing the banking system that could expose lenders to credit risk and possible legal actions for mortgage mis-selling.

Fraudulent mortgage applications are the first item on the agenda for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that starts next week.

A Federal Court case recently found that lenders relying solely on payslips to verify source of income may not be sufficient because they are "easily falsified".

The case involved car loans but is considered to be equally applicable to mortgage applications where a mortgagor's income is verified to two or three payslips.

"We believe this could potentially leave the banks at risk of being found to have also not sufficiently verified customer income in the mortgage application process," according to UBS analysis.



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