FCA Opens Only One Mortgage Fraud Investigation in 2025

The Financial Conduct Authority's decision to open only one mortgage fraud enforcement investigation in 2025 has raised eyebrows among experts, who claim that this figure does not reflect the true scale of the problem, as fraud is becoming increasingly sophisticated, with the UK housing market facing significant risks, including those related to market manipulation risks in financial markets. According to Freedom of Information data obtained by Thirdfort, as reported by The Intermediary, the FCA's enforcement activity appears to be decreasing, which is concerning given the complexity of mortgage fraud cases. Olly Thornton-Berry, co-founder of Thirdfort, has expressed concerns that the FCA's investigation in an entire year is a striking number, and it does not think it reflects the true scale of the problem, highlighting the need for a more comprehensive approach to tackling fraud, including addressing market manipulation risks.

The issue of mortgage fraud is closely linked to the broader problem of financial fraud, which can involve complex schemes, including money laundering, as highlighted in a House of Commons Library research briefing, which notes that companies can use fraudulent addresses to launder money, moving money that was earned illegally through a series of companies to obscure its origin. The City of London Police's Report Fraud centre is the national reporting centre for fraud in England, Wales, and Northern Ireland, and it refers cases with potential for investigation to local forces, which may work on cases alone or with other forces in Regional Organised Crime Units (ROCUs), as explained in another House of Commons Library research briefing. The fact that the FCA opened only one mortgage fraud enforcement investigation in 2025 suggests that there may be a lack of coordination between different agencies and a need for a more robust approach to tackling financial fraud, which can have serious consequences, as seen in cases such as the Ex-GungHo Exec Arrested in ¥40M Scam.

The reduction in enforcement activity by the FCA comes at a time when fraud is becoming increasingly sophisticated, and the UK housing market is facing significant risks, including those related to mortgage fraud, which can involve complex schemes, including identity verification and address fraud, as highlighted in a Company registration FAQs document. The fact that small company accounts filed with Companies House do not need to include a profit and loss account means that income and expenditure during each financial year cannot be tracked, making it easier for fraudulent activities to go undetected, as noted by Gordon Millar, a tax and accountancy expert, who has expressed concerns that the format of small company accounts is an open invitation to fraud. The FCA's decision to open only one mortgage fraud enforcement investigation in 2025 has raised concerns among experts, who claim that this figure does not reflect the true scale of the problem, and highlights the need for a more comprehensive approach to tackling financial fraud, including addressing the risks associated with market manipulation risks in financial markets.

The James Whitfield Take

Corporate Watchdog & Government Secrets — UK

As I reflect on the Financial Conduct Authority's recent actions, I am astonished to learn that only one mortgage fraud investigation was opened in 2025. In my opinion, this lack of scrutiny is a clear dereliction of duty. My thesis is that the FCA's inaction will ultimately embolden fraudulent activity in the mortgage sector. If nothing changes, it is the perpetrators of mortgage fraud who will emerge as the winners, whilst innocent consumers are left to bear the brunt of their deceitful actions. The FCA must take a more proactive stance to protect the public and maintain the integrity of the financial system.

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