Financial Markets Authority warns lenders on rise in mortgage fraud

Banks must watch for red flags, says FMA head of enforcement Louise Unger. (Image: Supplied)

Fri, 25 Jul 2025

Incidence of mortgage fraud perpetrated against borrowers is on the rise, the Financial Markets Authority says in a warning letter issued to banks and non-bank deposit-takers.Misconduct cases opened by the Financial Markets Authority (FMA) in potential mortgage fraud increased from nine in 2022 to 16 in 2023 and 23 in 2024.“This reflects a 78% increase in 2023, followed by a further 44% increase in 2024,” Louise Unger, the FMA’s executive director for response and enforcement, told BusinessDesk in an email. “Th...

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