The first half of 2026 has seen a sharp increase in mortgage fraud across all categories, driven by online identity theft and AI-enhanced scams, prompting calls for stronger verification methods in property transactions.
Mortgage fraud rose across every tracked category in the first half of 2026, according to Cifas’s latest Fraudscape update, underscoring how quickly criminals are adapting to tighter controls and digital processes. The anti-fraud body said mortgage application identity fraud climbed 36% year on year, while account takeover cases jumped to 27 from just one in the same period last year. False applications remained the largest category by volume, rising 4% to 691 cases.
The findings point to a broader escalation in financial crime. Cifas said in March that it recorded a record 444,000 fraud cases in 2025, up 6% from 2024, with identity fraud and account takeovers driving much of the increase. The Guardian reported at the time that criminals were increasingly using artificial intelligence to compromise mobile, banking and online shopping accounts, while Cifas warned that fraud had become more industrialised.
David Jones, chief executive of Cifas, said the rise in mortgage account takeovers was especially worrying because it showed fraudsters were moving quickly into a part of the market that depends on trust and identity checks. He said organisations could no longer depend on conventional document checks alone and needed stronger verification at every stage of the homebuying process. His warning comes as specialists including FTI Consulting have said generative AI and large language models are making it easier to produce fake documents and convincing phishing emails.
The surge also adds pressure on lenders to modernise how property transactions are authenticated. Nationwide remains the only major lender allowing mortgage deeds to be signed with a qualified electronic signature, a system advocates say offers stronger protection against AI-assisted fraud. Cifas said digital identity checks, alongside credit screening and other verification tools, are now essential if lenders and intermediaries are to protect borrowers, sellers and the wider integrity of the market.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
