Cost.co.uk Respond to Increase in Mortgage and Insurance Fraud Cases

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Leading UK comparison site, Cost.co.uk, has responded to a new report which reveals that insurance fraud cases are on the rise in the UK.

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Home insurance comparison is easy through cost.co.uk and allows homeowners to find affordable insurance policies without lying about their circumstances.

The level of fraud on mortgages and insurance policies has more than doubled since the start of the credit crunch, with the ongoing strains on household finances driving more cases.

The figures from Experian show that although the total rate of fraud on financial products has fallen since 2007, certain areas have seen a big increase in the number of false applications.

Fraud insurance cases increased more than two fold from 5.44 in every 10,000 cases in 2007 to 12 in every 10,000 in 2012. 86% of the frauds involved the person applying for the policy or making a claim.

Experian detailed that the group most responsible for fraudulent financial products in 2012 was a group they call ‘terraced melting pot’ which were people in routine urban occupations. They account for 21% of first part fraud.

A spokesperson for Cost.co.uk said:

“Insurance fraud is a huge problem for the industry, with people overlooking the fact that they are breaking the law and will face punishment and void policies if they are caught. Home insurance comparison is easy through cost.co.uk and allows homeowners to find affordable insurance policies without lying about their circumstances.”

Based in Essex, Cost.co.uk is one of the UK’s leading price comparison sites. Allowing their online customers to seek out great deals and offers for home insurance, car insurance, credit cards, holidays and more. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.

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Ben Austin
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