Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

FCA Opened Only One Mortgage Fraud Investigation in Past Year

A Freedom of Information (FOI) enquiry has revealed that the Financial Conduct Authority (FCA) opened just one enforcement investigation into mortgage fraud last year. The data, obtained by client due diligence platform Thirdfort, shows a significant drop in enforcement activity compared to previous years.

According to Thirdfort, the single case recorded in 2025 is similar to the near-zero activity seen during the Covid pandemic. Since 2018, the total number of FCA mortgage fraud investigations stands at 18, with previous years typically seeing three to four cases annually.

The release of these figures comes shortly after the Home Office published its Fraud Strategy 2026–2029 in March, which acknowledges that fraud is becoming more global and digitally advanced. Despite this, the FCA’s enforcement record appears to show a decline in activity.

Thirdfort notes that the apparent drop in FCA investigations coincides with growing evidence that mortgage fraud, and fraud in general, is increasing and becoming more difficult to detect. The company highlights that other agencies, such as the National Crime Agency (NCA), the Serious Fraud Office (SFO), and local police forces, also play roles in enforcement.

For UK letting agents and inventory clerks, these findings may be relevant as they highlight the ongoing challenges in detecting and preventing mortgage fraud within the property sector. The figures suggest that regulatory enforcement may not be keeping pace with the evolving nature of fraud, which is increasingly sophisticated and digitally enabled.