Only one recorded case of mortgage fraud was officially investigated last year, a new Freedom of Information (FOI) enquiry reveals.

The Financial Conduct Authority (FCA) opened a single enforcement investigation into mortgage fraud in 2025, according to data obtained by Thirdfort, the client due diligence platform.

Zero activity

Last year’s figures are close to the near-zero activity last seen during the Covid pandemic, Thirdfort says, raising questions about whether regulators are keeping pace with a rapidly evolving threat.

The figure comes as the Home Office published its Fraud Strategy 2026–2029 in March, acknowledging that fraud has grown more global and digitally advanced.

However, it seems the FCA’s own enforcement record tells a different story. Thirdfort’s FOI data shows that the total number of FCA mortgage fraud investigations since 2018 now stands at 18, with the 2025 figure representing a retreat from the three to four cases per year recorded in previous years.

The apparent drop in enforcement activity coincides with growing evidence that mortgage fraud, and fraud more generally, is both increasing and becoming harder to detect.

One FCA investigation in an entire year is a striking number, and we don’t think it reflects the true scale of the problem.”

Olly Thornton-Berry, Co-founder and CEO at Thirdfort (pictured), says: “One FCA investigation in an entire year is a striking number, and we don’t think it reflects the true scale of the problem.

“The FCA is one piece of a wider enforcement picture – the NCA, the SFO and local police forces all play a role – but the direction of travel is concerning.

Harder to detect

“Fraud is getting faster, more convincing and harder to detect, and AI is accelerating that shift.”

He adds: “The Government’s new fraud strategy is a step forward, and it’s right to invest in the infrastructure needed to tackle this. But enforcement action alone will never be enough when fraudsters can generate convincing fake identities and documents.”

More on fraud