10 Questions
Which of the following is a potential warning sign of fraud in the income employment category?
Accepting photocopies of income documents
What is one way to spot potential fraud issues with clients early in the finance arrangement process?
Conduct simple web checks on the employer
What is one potential warning sign of fraud in the income employment category related to bank statements?
False bank statements
Which one of these should be considered when scrutinizing large deposits for mortgage applications?
The number of pages shown on the bank statements
What should be obtained to verify the funds for a gifted deposit?
A letter from the donor and bank statement confirmation
What should be checked to ensure that all mainstream mortgages are plausible?
The applicant's income
What should be done if an application stalls due to a chain break or relationship breakdown?
Inform/update the lender about the reasons
Which of the following factors should be considered when assessing the quality of payslips?
The customer's latest payslips
What should be checked when reviewing bank statements for salary credits?
The matching of net income with payslips
What should be considered when assessing self-employed applicants?
The nature of the self-employed business and how customers generate business
Study Notes
Fraud Detection in Income Employment
- Inconsistencies in income or employment history can be a potential warning sign of fraud in the income employment category.
- One way to spot potential fraud issues with clients early in the finance arrangement process is to thoroughly review their income and employment details.
Bank Statement Verification
- Unusual or irregular patterns in bank statements, such as large deposits or irregular salary credits, can be a potential warning sign of fraud in the income employment category.
- Large deposits on bank statements should be scrutinized, and the source of funds should be verified to ensure legitimacy.
Mortgage Application Verification
- To verify the funds for a gifted deposit, a gift letter or a letter from the donor should be obtained.
- To ensure that all mainstream mortgages are plausible, the applicant's income and employment details should be thoroughly checked.
Application Processing
- If an application stalls due to a chain break or relationship breakdown, the applicant's situation should be reassessed, and alternative options should be explored.
Payslip Assessment
- When assessing the quality of payslips, the employer's details, the applicant's job title, and the salary payment frequency should be considered.
Bank Statement Review
- When reviewing bank statements for salary credits, the frequency and consistency of the credits should be checked.
Self-Employed Applicants
- When assessing self-employed applicants, their business type, income stability, and credit history should be considered.
Learn how to protect our business from financial crime with this practical guide. Spot warning signs early and avoid significant impacts on your business. Discover key categories to watch out for and stay one step ahead of fraudsters.
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