Many of us now struggling to make ends meet and find suitable financial solutions to free up a little more money after the rent or mortgage and bills are paid.
With the credit crunch hitting the UK affecting the daily lives of many - with rising food and fuel prices contributing to higher outgoings - there has also been a substantial increase in the number of fraud cases.
Fraud prevention services in the UK have reported a rise of 24% in the past three years. Many of these focus on fraudulent applications for loans and mortgages.
Fraudulent insurance claims are on the increase; costing the insurance industry upwards of ?1.6 billion a year. Many now fear that these cases are also contributing to the rising cost of insurance premiums and loans.
Some customers are now resorting to using a variety of lies in their applications in order to increase their chances of getting approved for loans and credit cards.
These can range from giving false details on their poor credit histories, forging documents and even resorting to using maiden names and false addresses in applications.
However, lenders are now getting tougher on those who are trying to cheat the system. As technology advances, it has now become easier to separate the lies from the truth when it comes to applications.
And with the introduction of a new data-sharing database, many insurers could soon implement further background and credit checks when considering applications, to whittle out those who have tried previously to falsely claim or have made multiple claims in a short space of time.
Insurers will also have access to experts who specialise in analysing damage of structures and cars in order to determine whether claims are valid. By focusing on recognising the tell-tale signs of fraudulent claims, the insurance industry crackdown could mean good news (as well as lower premiums) for those who are genuine in their applications or claims.
It's always best to do plenty of research when looking for loans, and to be as honest as possible during applications. Even if you think your situation means you can't get a good deal, by shopping around you can end up finding a deal which suits you down to the ground.
And of course, it'll look better on your credit rating for the future.
