Opinion
The higher potential exposures indicate deep and ingrained issues within the home loan market, and the time for a concerted industry response is now.
The detailed mortgage fraud and loan irregularity reviews being conducted by banks across the sector have uncovered ballooning levels of potential exposure, and the estimates are nothing but conservative.
Across the major banks and Macquarie, loans identified as suspicious or fraudulent so far have swelled to about $3 billion, people with knowledge of the investigations told this columnist on the condition of anonymity.
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This remains the most prevalent form of financial crime globally. It targets the direct access points to your money: your cards and your bank accounts.
- Skimming: Criminals use small devices called “skimmers” placed over ATM or point-of-sale card slots to capture the data from your card’s magnetic strip.
- Card-Not-Present (CNP) Fraud: This occurs during online shopping where a physical card isn’t required. Thieves use stolen card numbers, expiry dates, and CVV codes to make unauthorized purchases.
- Account Takeover (ATO): A hacker gains access to your online banking credentials (often through malware or phishing) and changes the contact details or passwords, locking you out while they drain your funds.