The proportion of credit applications that could involve fraud has risen by 52 per cent over the past two years, according to credit reporting and data analytics company Veda.Veda analysed A$1.6 trillion of credit applications that were checked by its credit bureau during the 2013/14 financial year and found that $1.9 billion were "red-flagged", meaning they were high risk and had potential links to fraud events.Veda's general manager of fraud and identity solutions, Imelda Newton, said the number of red-flagged applications was rising as a percentage of all types of credit applications.Newton said: "Credit applications are red-flagged, or highlighted for further investigation by credit providers, if there is an association of details such as address or driver's licence with a previous known fraud event."The value of red-flagged credit applications on Veda's FraudCheck database has grown 52 per cent from $1.25 billion in 2011/12 to the current level of $1.9 billion. This has outstripped credit growth of around 40 per cent over the same period.Newton said identity takeover was the fastest growing form of credit application fraud.