Mortgage fraud has increased across all reported categories in the first half of 2026, according to data from fraud prevention service Cifas, raising concerns about security vulnerabilities in property transactions.
The figures show mortgage application identity fraud rose by 36% compared with the same period in 2025. False mortgage applications increased by 4% to 691 cases, representing the largest category by volume.
Account takeover cases involving mortgages showed a significant increase, rising from one case in the first half of 2025 to 27 in the same period this year. Mortgages also recorded an increase in misuse of facility fraud, with cases rising from three to nine, bucking an overall decline in this category across other sectors.
Industry response
David Jones, chief executive of Click2Check, an identity verification provider, said the data highlighted vulnerabilities in the property transaction process. “Identity fraud linked to mortgage applications has increased by 36% and false mortgage applications are also continuing to climb,” Jones stated.
He noted that account takeover cases represented the most concerning trend. “While the numbers remain relatively small, the rate of growth demonstrates how quickly fraudsters are adapting their tactics,” he said.
The fraud increases come as the property sector faces other challenges, including difficulties in the leasehold market and affordability pressures affecting buyers.
Verification measures
Jones said organisations could no longer rely on traditional document checks alone. “Criminals are becoming increasingly sophisticated, using stolen or fake identities and compromised accounts to target lenders, intermediaries and consumers alike,” he added.
Overall fraud cases reached a record high for the first six months of the year and are on course to surpass previous annual records, according to Cifas.
The data suggests lenders and intermediaries may need to enhance identity verification procedures throughout the mortgage application and completion process to address the rising fraud levels.
