Fraudulent Britain: Nearly 13 MILLION lying on finance applications

Nearly one in four Brits (24%) admit they have intentionally lied when applying for a personal finance product, such as car insurance, according to new research from Go.Compare.* Nationwide, this could equate to nearly 13 million people deceiving financial providers** - and the comparison site warns that even “small” lies can be classed as fraud.

The survey of 2,001 UK adults reveals the scale of dishonest declarations across everyday financial products, raising concerns about the number of people who could be left unprotected or facing serious financial consequences.

Which products are Brits lying about?

Among those who admitted dishonesty, the most commonly lied-about product was car insurance (7%), followed closely by credit card applications (6%), home insurance (6%), travel insurance (5%), and life insurance (5%). A noticeable number also lied when taking out health insurance (4%), pet insurance (4%), mortgages (4%), personal loans (3%), car finance or leasing (3%), and gadget insurance (3%). The findings suggest many consumers are trying to make themselves appear lower risk, without realising that even small inaccuracies can backfire.

What are people lying about?

Among those who admitted dishonesty:

• 21% lied about their income
• 16% lied about how they intended to use the product
• 16% lied about the value of their property or its contents
• 16% gave incorrect details about their home
• 16% gave incorrect details about their vehicle
• 15% gave incorrect personal details such as age or medical conditions
• 14% lied about their profession or job title
• 12% lied about lifestyle habits such as smoking or alcohol intake
• 12% gave incorrect details about their pet
• 11% lied about their address
• 11% lied about their marital status or number of dependents
• 10% gave a false claims history
• 10% gave a false conviction history

Go.Compare warns that misleading a lender or insurer can have serious financial or legal consequences. These may include declined applications, cancelled policies, payouts being refused, difficulty securing credit in future, and potential legal ramifications if fraud is identified.

These risks are even greater during the current cost of living squeeze, where some consumers may feel pressure to bend the truth.

Tom Banks, Go.Compare car insurance spokesperson, said: “Our research shows that a shocking number of Brits are sneaking false information into their financial product applications. Common lies Brits tell include how much they earn, what the product is being used for, personal details like age or medical conditions, and their occupation.

“The quotes we receive from lenders and insurers reflect our personal details and circumstances - which come together to form a unique risk profile. Lying on your personal finance applications, whether it’s a big lie or just a small change, is never a good idea. Any statements you knowingly make that are untrue can be classed as fraud, and in the case of insurance policies could leave you without cover - or a payout - when you need it most.”

Go.Compare urges anyone applying for insurance, credit or finance to read questions carefully, declare information accurately, and update their provider if circumstances change. Honesty protects your cover, your credit record and your financial security.

To learn more about car insurance fraud and how to avoid it, visit: https://www.gocompare.com/car-insurance/guide/car-insurance-fraud/.