UK Car Finance Fraud On The Rise

There has been a drastic increase in UK car finance fraud during recent months. Cars obtained fraudulently and totaling £3.8 million in value were shipped from the UK during this period. Reduced manpower has rendered authorities nearly powerless to stop this.

Some observers say government spending cuts are to blame for the reduced level of enforcement.

The Finance and Leasing Association (FLA) released statistics revealing that fraudsters are using stolen identity documents to obtain car loans. These individuals soon ship out the vehicles to other countries where they are sold for profit.

Between January and March 2011, 230 luxury cars were snuck through UK ferry ports. This represents a 17 percent increase from the same period in 2010.

An FLA spokesperson commented that fraudsters work in a variety of ways. Police hesitate to disclose the methods but providing false employment histories and using stolen identification are included. With their eyes on this, police managed to keep an additional 2,000 illegally secured cars from leaving the UK during the first three months of 2011.

Among the largest police victories was a haul that featured an Audi Q7 and Lamborghini Gallardo Spyder. Suffolk police seized these and several other vehicles during an attempted shipment through Felixstowe. To continue preventing crimes of this nature, the FLA notes that more funding is necessary.

Funding for the Vehicle Crime Unit was recently reduced by the coalition government.

Whether they obtain regular or bad credit car finance, fraudsters are taking advantage of the reduced level of enforcement. They are often able to get car loans and ship the vehicles out of port long before authorities catch wind of the situation.

The impact of a continued inability to stop this practice could be rather significant for the UK economy. This has led many advocates to request increased funding for the appropriate entities.