Top lenders admit missing 25% of fraud attempts

Lenvi Riskfactor has unveiled its 2023 European fraud readiness report. The study delves into the impact of fraud on receivables finance lenders in key European markets. This includes the United Kingdom, France, Spain, and Germany.

89% of respondents from the four markets reported a surge in fraudulent activities against their businesses over the past year. Furthermore, 81% anticipate a continuous increase in fraud throughout the current financial year.

A concern expressed by 73% of respondents is the increasing sophistication of fraud. This has prompted lenders to bolster their fraud prevention budgets. Despite these efforts, even lenders with the highest confidence in their fraud prevention capabilities stated that they fail to detect 25% of attempted frauds.

70% of all receivables finance lenders recognise fraud as a significant risk for their businesses. This concern intensifies to 83% for lenders with fewer than 250 employees. This evidences the need for anti-fraud measures, particularly among smaller entities.

The report establishes a correlation between technology adoption and fraud concerns. Lenders relying on manual-led approaches express more worry, with 84% considering fraud a high risk. In contrast, those employing technology-led strategies exhibit a lower level of concern at 70%,. A blended strategy falls in between at 66%.

Ahmed Amin, Lenvi Riskfactor sales director, emphasises the urgency for companies to remain vigilant in addressing the threat of fraud.

“Companies need to develop and refine approaches to fraud prevention, based on an effective combination of technology solutions and human expertise … Businesses in the receivables finance industry will need to be diligent and endlessly watchful if they are to continue to protect themselves and their customers from fraud risks in the years to come.”

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.