Specialist lenders and brokers are being warned that poor consumer understanding of digital identity verification is creating avoidable fraud risk in property transactions.
Research from Credas Technologies found that 62% of UK homebuyers are sending copies of passports and driving licences via email while one in 10 are sharing documents through WhatsApp. Both routes lack structured audit trails and formal verification controls.
The findings raise concerns for the bridging and development finance market where speed of execution is critical but anti-money laundering (AML) compliance remains non-negotiable.
FRAUD CONCERNS
Manual document sharing, particularly under time pressure, increases exposure to impersonation fraud and document tampering.
Despite widespread use of insecure channels, 86% of respondents said having control over how and when their data is shared is important or very important.
Nearly a third (32%) cited lack of transparency in the verification process as a key concern.
Credas says the data highlights a significant education gap, with many borrowers unaware of how certified digital ID frameworks work or why they provide greater protection than traditional document exchange.
DIGITAL IDENTITY
Neil Williams (main picture, inset), CTO at Credas, says: “The problem isn’t that the public doesn’t trust digital identity – it’s that very few have explained what it actually is or how it protects them better than ‘traditional’ methods.
“As a provider certified against the UK Government’s Digital Identity and Attributes Trust Framework, we know that the technology exists to give people the control and protection they’re asking for. However, if businesses don’t explain what they’re offering and why it matters, consumers will continue falling back on insecure alternatives, including emailing documents.”
VULNERABILITY RISKS
He adds: “Education isn’t marketing, it’s a duty of care. Businesses rolling out digital verification have an obligation to explain what they’re asking people to do and why it’s safer.
“Without that, we’re leaving consumers vulnerable to fraud and holding back the solutions designed to protect them.”
The firm is calling on property finance providers, including bridging lenders and specialist distributors, to place greater emphasis on explaining digital verification processes to borrowers – arguing that improved understanding is now a frontline defence against fraud in high-value, time-sensitive transactions.
