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

Mortgage Fraud Rises Sharply Across All Categories in 2026

Mortgage fraud increased across all reported categories in the first half of 2026, according to the latest Fraudscape update from Cifas. The data shows significant rises in mortgage application identity fraud, account takeover cases, and false applications.

Cifas reported that mortgage application identity fraud rose by 36% compared to last year. Account takeover fraud, where an attacker gains control of a personal account, increased from just one case in the first half of 2025 to 27 cases in the same period of 2026. While there was an overall decrease in misuse of facility cases, mortgage-related misuse bucked the trend, rising from three to nine cases—a 200% increase.

False application cases were the most numerous among all fraud categories, with a 4% increase to 691 cases in the first half of 2026. These figures highlight the growing challenge of fraudulent activity in the UK mortgage sector.

For letting agents and inventory clerks, these trends underline the importance of robust identity verification and due diligence throughout the property transaction process. The report notes that digitalisation is being adopted by lenders to improve efficiency and security, with Nationwide identified as the only major lender allowing mortgage deeds to be signed using a Qualified Electronic Signature (QES). The slow uptake of QES has been criticised, despite arguments that it offers strong protection against artificial intelligence (AI) fraud.

The findings emphasise the need for technology-driven verification processes, including digital identity checks and screening, to help identify fraudulent activity before it leads to financial loss. As fraud volumes continue to rise, investing in digital verification solutions is increasingly seen as essential for safeguarding all parties involved in property transactions.