The mortgage industry has been warned of the emerging fraud risks posed by Artificial Intelligence (AI) after a major lender detected a suspicious case involving an AI agent.
Brightstar Group chief executive Rob Jupp revealed the incident during his closing remarks at the Brightstar Specialist Lending Expo 2026 at the London Stadium on Wednesday 7th October, as he warned the industry against focusing solely on the potential benefits of AI.
He said one of the biggest concerns among major lenders was the threat AI could pose both to existing business models and through its potential use in fraud.
Jupp said: “AI seems all ‘upside at the moment’ but advisors shouldn’t forget who’s advice and ultimately, future is on the line, and its isn’t an AI Agent, but the regulated mortgage advisor.”
Jupp said: “The first piece of formal AI fraud in the UK in the mortgage market has probably already been done, and certainly the first multiple detections of an AI agent getting really close has just been frequently spoken about.”
He urged brokers and lenders to recognise the risks accompanying the rapid adoption of the technology.
“If we think that there is all just upside with AI, we’re mistaken,” Jupp said.
“Be careful and understand that it can take you to a place within your business, with your clients, that could be quite an unpleasant place, and just be mindful of that.”
However, Jupp stressed that AI was also creating significant opportunities for mortgage businesses.
He revealed that six months ago virtually none of Brightstar Group’s leads came through AI, compared with just under 5% today.
Jupp described the technology as potentially a “fantastic lead generator”, but stressed that its effectiveness depended on the quality of information feeding it.
His comments followed an earlier panel discussion at the Expo in which speakers highlighted the importance of maintaining human oversight of AI-generated information and decisions.
