BDLA partners with fintech firm to deliver new anti-fraud platform
Mortgage transactions, like other financial dealings, carry the potential risk of fraud. The mortgage sector regularly encounters risks such as identity theft, falsified documents, misrepresentation of income or property value, and application fraud. Criminals may exploit weaknesses in verification processes or use advanced tactics to deceive lenders and brokers. The complexity and speed of certain transactions — particularly in bridging and development finance — can heighten these risks.
In response, industry bodies and technology providers are developing new tools and protocols to help detect and prevent fraudulent activity, aiming to protect both lenders and borrowers.
While major financial institutions have established systems to identify and prevent mortgage fraud, smaller lenders have often lacked access to similar resources. The Bridging & Development Lenders Association (BDLA) aims to address this gap through a new partnership with fraud data firm Synectics Solutions, launching a fraud intelligence-sharing platform tailored for short-term property lenders.
The initiative will give BDLA members access to fraud prevention insights traditionally available only for larger players. The system, designed for secure and real-time intelligence sharing, is intended to help lenders detect suspicious activity earlier in the lending process.
For mortgage brokers, the new system means quicker access to shared intelligence on potential fraud risks in short-term property lending. This could enable faster identification of suspicious applications and greater confidence in the integrity of deals, reducing exposure to financial crime and helping brokers better protect their clients and businesses.
The solution will be introduced to BDLA members in phases over the coming months. Based on Synectics Solutions’ National SIRA system, the platform will operate in compliance with GDPR and UK data protection standards.
The BDLA said the new system will complement its existing due diligence tools and forms part of its ongoing efforts to support lenders in tackling fraud within the bridging and development finance sector.
“Fraud remains one of the most significant challenges facing the bridging and development lending sector,” said Vic Jannels (pictured left), chief executive of the Bridging & Development Lenders Association. “As the market grows in both volume and complexity, so too does the risk posed by increasingly sophisticated fraudulent activity.
“At the BDLA, we’ve made it a priority to help lenders stay one step ahead of the fraudsters and our collaboration with Synectics Solutions represents a significant stride forward in tackling this issue head-on. The development of a bespoke fraud early warning system, designed specifically for the needs of short-term lenders, enables secure real-time intelligence sharing that will help our members to identify red flags and suspicious activity at the earliest possible stage. This joint initiative will be instrumental in protecting lenders, while supporting the continued integrity and growth of our market.”
Maxwell Hughes (pictured right), business development manager at Synectics Solutions, said they were proud to work with the BDLA to bring a tailored fraud prevention tool to the specialist finance space.
“Lenders operating in the bridging and development market face unique risks given the speed of transactions,” Hughes pointed out. “By making shared intelligence more accessible, we can collectively reduce exposure to fraud and strengthen trust across the sector. Collaboration like this gives us greater power to spot, identify and prevent fraud and financial crime.”
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