Loan fraud occurs when individuals or organizations provide false information to secure a loan. This can involve misrepresenting income, assets, or credit history to qualify for a loan amount that they would not otherwise receive. Such actions can lead to significant financial losses for lenders and can result in legal consequences for the perpetrators. Common types of loan fraud include mortgage fraud, where borrowers deceive lenders about property value or occupancy, and student loan fraud, where individuals falsify information to obtain educational funding. Detecting and preventing loan fraud is crucial for maintaining the integrity of financial systems and protecting consumers.