AI fraud in loan applications surges after RBA interest rate hikes

Reduced borrowing capacity following RBA governor Michele Bullock’s multiple rate hikes has driven more loan applicants to alter their documents. Picture: Martin Ollman Generative AI has opened the door to a swift increase in liar loans and homebuyers squashed by higher interest rates are committing some of the highest rates of loan fraud. Exclusive national polling has revealed nearly one in five Aussie borrowers, or about 18 per cent, have used artificial intelligence to create or alter documents for a home loan application. The national poll commissioned by comparison platform OurTop10 found that bank statements topped the list of documents being altered, accounting for 10 per cent of application forgery. This was followed by employment documents (9 per cent) and pay slips or proof of income (6 per cent). MORE: Aussie Boomers could lose $3.5tr in new wealth scam Artificial intelligence has been able to produce deep fakes for years. A further 3 per cent said they had used AI to create or alter a competing lender’s interest rate offer. Respondents could select multiple options. OurTop10 director Mansour Soltani said mortgage fraud was becoming more widespread because generative AI...