Following the article my colleague wrote called 'Will there be any come back on Bounce Back Loans?' we highlighted the potential issue of fraud on bounce back loans and suspect there is much more to come.
A report by the National Audit Office noted the Government estimated more than a third of loans, worth £17bn, may never be repaid due to both fraudulent activity and legitimate borrowers defaulting. Potentially the lack of adequate measures in place to prevent fraud with the loss of billions of pounds through the taxpayer-funded government aid scheme meant the process was vulnerable to abuse by individuals and organised crime.
There are many stories in the press and online where applications have been by a business which was either not eligible or had been set up to commit fraud. In some instances, multiple applications across a number of different lenders. Fraudsters exploiting the loan system have stolen victims' personal details using phishing emails or buying them on forums in order to set up a bogus business in their name.
The banking and finance team have seen a number of fraudulent loans. We have expertise in tracing assets and going after fraudsters.
If you are a lender or finance company and have experienced issues relating to fraud associated with bounce back loans the Banking and Finance team at Spratt Endicott are here to assist you.