Westpac chief executive Anthony Miller says banks should prosecute home loan brokers and introducers found to have submitted doctored borrower information to secure larger loans as the sector investigates more than $1 billion in potentially fraudulent mortgages on their books.
Financial institutions had fought the risk of falsified loan information “since the dawn of time”, he said, confirming the nation’s second-largest mortgage lender faced the same issues as Commonwealth Bank, which is investigating $1 billion in loans it suspects were doctored with artificial intelligence tools.
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This type of fraud targets the supply chain and accounts payable departments of businesses.
Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.
