Malaysian Consumers More Receptive To Exaggerate On Loan Applications, Study Finds

KUALA LUMPUR, Sept 26 (Bernama) -- Global analytics software leader FICO in its latest global consumer fraud research, revealed the alarming attitudes toward first-party financial fraud both in the Malaysian market and globally.

According to the research, more than half of Malaysians (55 per cent) think it is acceptable or normal for people to exaggerate their income on loan applications, significantly more than the global average of 39 per cent.

The study finds that three in five Malaysians think it is normal or acceptable in some cases to misrepresent their income on applications for a bank account (66 per cent), automotive financing (64 per cent), or mortgage (59 per cent).

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Similarly, many Malaysians are comfortable with exaggerating income on personal loan applications, further complicating financial integrity, according to a statement.

About a third (36 per cent) of Malaysian consumers believe it is never acceptable to exaggerate income on a personal loan application, while another third (37 per cent) find it acceptable under specific conditions.

Globally, attitudes differ notably, with a majority of consumers (56 per cent) firmly reject the idea of exaggerating income on loan applications, viewing it as never acceptable, whereas one in four (24 per cent) consider it permissible in certain circumstances, while one in seven (15 per cent) view it as a normal practice.

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The survey also reveals that more than two in five (41 per cent) Malaysian consumers believe it is acceptable under certain circumstances to lie on mortgage applications, and close to one in five (18 per cent) view it as normal for people to deliberately misrepresent their income.

Meanwhile, falsifying insurance claims is viewed as the most taboo form of fraud, according to the research, with close to half (49 per cent) of Malaysian respondents believing it is not acceptable to exaggerate the value of stolen property or add false items to a claim.

Matching global trends, attitudes shift regarding other financial products, where half of consumers globally, including more than a quarter of Malaysians (29 per cent), feel it is unacceptable to exaggerate income on a mobile phone contract or an application for automotive financing.

The survey was conducted in November 2023 by an independent research company adhering to research industry standards, with 1,001 Malaysian adults surveyed, along with approximately 12,000 other consumers in Canada, the United States, Brazil, Colombia, Mexico, the Philippines, Indonesia, India, Singapore, Thailand, the United Kingdom and Spain.

-- BERNAMA