Unmasking document fraud: A look at the most fraudulent bank statements of 2023

picture of bank cards in a wallet

Document fraud is a growing concern in today's increasingly digital world. As financial institutions continue to modernise their operations, so do fraudsters who seek to exploit vulnerabilities in these systems. Homeppl has collected close to half a million financial documents since our inception, so we know a thing or two about fake documents. In this blog, we take a look into the prevalence of bank statement fraud across various banks in the UK, studying the period between January and August 2023

Understanding Document Fraud

Document fraud involves the manipulation or fabrication of financial documents for unlawful purposes, such as identity theft, loan applications, or unauthorised fund transfers. The consequences of document fraud can be severe, ranging from financial losses to reputational damage for the affected institutions. To gain a deeper insight into this issue, let's explore some key statistics and insights.

Bank-wise Document Fraud Analysis

graph of most fraudulent bank statements

Here's a list of banks along with the corresponding percentages of document fraud cases they've encountered:

Lloyds (13%)

Lloyds has accrued the highest percentage of document fraud cases among the listed banks. This could be due to the bank's prominence and the attractiveness of its customer accounts to fraudsters. Lloyds' response to document fraud includes comprehensive customer education campaigns and partnerships with fintech firms to enhance security.

Here’s an example of how Fraud Finder has caught fraud in Lloyds statements in the past:

HSBC (12%)

HSBC follows closely, with the second-highest percentage. This may be attributed to its extensive global presence and the diversity of its customer base. The bank's commitment to combating fraud is reflected in its investment in cutting-edge cybersecurity technologies and collaboration with international law enforcement agencies. However, the majority of document fraud is committed by first-party users after they have downloaded their own authentic PDF statements. 

Fraud Finder has institutional knowledge of every major bank and challenger bank in the UK. Our machine learning algorithms are constantly updating, sniffing out anomalies in the document properties and software used to create HSBC statements when uploaded.

Barclays (12%)

Barclays shares the same percentage as HSBC, indicating that these two major British banks are frequent targets of document fraud. Both banks have been pioneers in adopting biometric authentication methods, such as fingerprint recognition, to protect their clients. Again, no bank statement is 100% fraud-proof; if it can be ran through a PDF editor, it can be manipulated to hide bad credit, commit identity theft or inflate income.

Monzo (9%)

Monzo, a digital-only bank, faces a significant percentage of document fraud. An increasingly popular bank among the younger generations, the challenger bank’s statements are most-often produced digitally straight to mobile phone. 

See this stunning case of Monzo bank statement fraud where the statement owner attempted to change the name and address from the original statement. Fraud Finder can restore previous versions of submitted documents. Everything in blue is the original text; everything in orange represents edited data. In this case, this is used to hide bad credit by supplying a false address.

Fake monzo bank statement example

Metrobank (8%)

While Metrobank's percentage is relatively high, it's crucial to note its smaller customer base compared to the giants in the industry. Metrobank's focus on personal customer relationships has helped in swiftly identifying and mitigating document fraud. 

Document fraud: A broader perspective

Document fraud isn't confined to a specific geographic region or type of institution. It's a global issue that affects banks, credit unions, and financial service providers of all sizes. Here are some key takeaways about document fraud:

Constant adaptation: Fraudsters are continually adapting to new technologies and strategies, making it crucial for financial institutions to stay one step ahead by investing in advanced security measures. This includes the use of artificial intelligence and blockchain technology to create unforgeable digital documents.

Customer awareness: Educating customers about the risks of document fraud and providing them with tools to protect their personal information is vital in preventing fraud. Banks can organise seminars, webinars, and distribute informative materials to raise awareness. Fintech providers like Homeppl Fraud Finder are continuing to invest in better and more accurate technology to maintain leverage over application fraud in a number of industries.

Regulatory compliance: Adhering to regulatory requirements and industry standards is essential to minimise the risk of document fraud and the associated legal repercussions. Collaboration with regulatory bodies ensures banks remain up-to-date with the latest compliance measures.

In a nutshell

Document fraud is a pervasive challenge for banks and financial institutions across the globe. By understanding the nuances of this issue and taking proactive measures to combat it, we can protect both our financial systems and the individuals who rely on them. Vigilance, adaptability, and cooperation are key in the ongoing battle against document fraud. As technology evolves, so too must our efforts to safeguard the integrity of financial documents and transactions, ensuring a safer and more secure future for all.

See our latest case studies on how we help finance companies prevent document fraud with automation:

  • How Cubefunder protects and grows its loan book using Fraud Finder.

  • How we prevented an £800k loan from being granted to a fraud for Apex Bridging

  • How Portman Asset Finance reduced fraud & cut operational cost.

  • Protecting Letref's high-net-worth clients by using Fraud Finder.

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