Fraud – Pension Scams and Mortgage verification scheme to combat Fraud

Our statement on Fraud, mortgage application Fraud and Pension Scams

Financial fraud is a risk to everyone and every business. At Pioneer we are diligent to the risks of Pension Scams and other types of Fraud such as Mortgage Fraud.

AML – anti-money laundering is a key frontline regulatory requirement and all financial institutions the world over are required to co-operate and have stringent processes in place to identify such and report it.

If Mortgage lenders reasonably suspect, following their own rigorous checks, that Mortgage Fraud may be taking place, Mortgage lenders will send relevant details of mortgage applications where they have inadequate evidence of declared income and suspect fraud, using a secure electronic platform to HMRC which will check income details declared to lenders against information provided in income tax and employment returns. HMRC will then advise lenders whether or not the details correspond, which will inform lending decisions.

As well as aiding Mortgage Fraud prevention, there are schemes that help HMRC to risk assess whether the information it has been given on applicants’ tax affairs is correct. In return, lenders gain access to a source of data that helps them to lend responsibly and manage risk. Financial institutions use a variety of sources to help them assess fraud risk, however, and will not rely solely on responses provided by HMRC to reach a decision where the lender suspects fraud.