Dunfermline Building Society, Scotland's second largest mutual lender, has deployed a web-based fraud detection tool to help it identify risks quickly and support the expansion of the business outside Scotland.
"As the methods criminals use to try to commit these offences improve, we are upgrading our defences to stay ahead," said Crawford McCaughie, senior manger lending at Dunfermline Building Society.
The building society chose to implement Experian's Hunter system based on research and positive feedback from other lending organisations. According to McCaughie, Hunter was used to detect fraud worth more than £800m in 2005.
"We were also attracted by the relatively short time it took to roll out the system, and with the average mortgage worth £115,000, we expect to see a return on investment within a year," said McCaughie.
The Hunter system checks new applications for financial products against previous applications, claims and fraud cases held in a national database across 90 lenders, making potentially fraudulent applications easier to identify and refer for investigation.
"Having a robust fraud detection tool will enable us to expand into new markets outside our immediate geographical area with confidence, because it will eliminate the risk normally associated with a lack of local knowledge," said McCaughie.