AI fraud in loan applications surges after RBA interest rate hikes

Key points

• Nearly one in five Australian borrowers, about 18 per cent, say they have used artificial intelligence to create or alter documents for a home loan application, according to a national poll by comparison platform OurTop10. Bank statements were the most commonly altered documents, followed by employment records and pay slips.
• Younger borrowers reported higher rates, with 56 per cent of Gen Z and 36 per cent of Millennials saying they had done so.
• OurTop10 director Mansour Soltani linked the trend to higher interest rates reducing borrowing capacity, and said AI tools are outpacing lenders' ability to detect false documents.