One in ten Aussies are committing financial fraud

Apparently Aussies are committing hundreds of billions in financial fraud.

finder.com.au, reports that millions of Australians are being untruthful to save a buck.

One in ten Aussies (10%) admit to lying on a finance application in order to secure credit, meaning more than $220 billion¹ in finance could have been applied for under false pretences.

The survey of 2,010 shows 4% lied on a credit card application and with roughly 16.1 million cards in circulation, that means more than 600,000 may have been acquired using false information. 

Bessie Hassan, Money Expert at finder.com.au, said honesty is always the best policy when it comes to credit applications.

“If the false information results in you gaining access to credit you would not otherwise be able to obtain then there could be serious consequences.

“It might mean you are more likely to default and depending on the fine print you could even face prosecution.

“Giving false information whether that’s exaggerating the value of your assets or employment status to underestimating expenses – is fraud,” she said.

The research also revealed that 1.3 million Australian have committed insurance fraud.

Aussies were most likely to bend the truth on car insurance, with 561,000 lying on applications, followed by health insurance (486,000) and life insurance (205,000).

Hassan said honesty is the best policy when it comes to insurance as well.

“Even if telling the truth could increase premiums, it’s worth being upfront as the alternative could have serious consequences. 

“Insurance fraud is illegal, so it goes without saying that dishonest claims will be denied.

“Insurance brands have claims investigators so it’s likely they’ll find out if you’ve lied,” she said.

Generation Y were more than 10 times likely to lie (17%) on an application than Baby Boomers, at only 1%.

“The best legal way to reduce your premiums is to compare your options online.

“Whether it’s pre-existing conditions, no-claim bonuses or even your age, lying isn’t worth the rejected claim if something does go wrong.

“Be upfront because even if you are a long standing customer, questions will be asked about what you put on your application,” she said.

¹ ABS data. Australian National Accounts: Finance and Wealth, June 2018. http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/5232.0Main+Features1Jun%202018?OpenDocument

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.