London and South-East are the top fraud hotspots

London and the South-East are the key hotspots for fraudulent applications across all product sectors, according to research by CIFAS.

The numbers of confirmed frauds recorded by CIFAS - The UK's Fraud Prevention Service for asset finance (e.g. car purchases), bank accounts, communications (e.g. mobile phones), credit cards, insurance, loans and mortgages, demonstrate that the concentration is strongly focused within the catchment area of the M25.

CIFAS Research Manager, Sandra Peaston, comments: "Although it is not unexpected that fraud should be at its most prevalent in cities, it is remarkable that almost all fraudulent activity is concentrated in and around London. Many elements conspire to make this the hub of activity for fraudsters, not least because they may feel that the population density affords anonymity. Years ago, that might have been true, but fraud data sharing has put an end to that. It is also true to say that London is a city of stark contrast where extraordinarily wealthy and socially disadvantaged people often live in close proximity. This can both provoke and help to facilitate fraudulent behaviour."

Bank accounts and credit cards remain the fraudsters' products of choice, but it is also noticeable that in the top-five postal districts for fraud, only three types of product (Asset Finance, Communications and Insurance) failed to include all five within their top ten hotspots. While London and the South-East remain the dominant area for these three products, the statistics show that Lanarkshire is also an active hotspot, as is CV6 in Coventry.

Equally of note, however, is that the top ten mortgage and credit card fraud hotspots all fall within the M25.

Kate Beddington-Brown, Head of Communications at CIFAS, comments: "Being the UK's main financial centre also provides obvious incentives and, for mortgage fraud at least, the fraudster has naturally gravitated to the location that offers the richest pickings because property prices are higher than elsewhere. Add to this the growing financial hardship caused by the ‘credit crunch' and you have a dangerous and potent mix."