Brokers a main source of fraud risk, say lenders

It follows an FSA thematic review of lenders' systems and controls, which concluded that, while there were examples of good management of fraud risks, it also identified "weaknesses common to many firms". In particular, it identified vulnerabilities in relation to the management of third party relationships and the resourcing of frontline fraud prevention areas, such as firms' underwriting and anti-fraud teams. However, a number of lenders told the regulator that third parties, including brokers, were the main source of fraud risk. The FSA said that, while there have been improveme...