Top Tips for Protecting yourself from client fraud

Clients can sometimes be less than honest in their dealings with brokers and funders. And unfortunately, this can end up reflecting on you, the broker.

In our recent compliance workshops, we covered some of the ways you can cover yourself when it comes to verification. Here are some of the tips we shared.

1. Run a Veda check

Remember that a broker enquiry does not appear on their file, however, a funder application will. This provides a warning to the broker of a shopped deal.

It's a useful way to see defaults and credit score before lodgement, and to catch undisclosed liabilities. This avoids hassle and headaches later down the track.

It's also another activity to satisfy the 'reasonable enquiry' requirement of the regulations.

2. Verify income two ways

Rules implemented from Nov 2016 require income documentation, and a salary credit check comparing payslips to bank statement credits over 2 pay cycles.

It also requires a second verification, by means of a PAYG summary, notice of assessment, employment letter, or employer phone call.

However, other ways to double check the validity of these are to:

-Run an ABN check of the employer, to ensure they exist (and it's not simply a friend of the applicant)

-Ensure that the payslips matches up with the ABN.

-Review payslip basics - super and annual leave displayed and be wary of rounded numbers

These are just some of the tips shared in our compliance workshops. If you'd like to attend one in the future, check with your State Manager to see when the next one is scheduled.