Credit Fraud

What is Credit Fraud?

Credit fraud is the use of corporate credit ratings to obtain goods (and occasionally services) by deception, with no intentions of repaying the debt.

Quite simply, the giving of credit when supplying goods is an opportunity for fraudsters to intervene and make money. The individuals that perpetrate these crimes are becoming better at it, and no longer rely on gullibility, but more on inattentiveness. Most businesses are alert to the surprise e-mail from the MD requesting a cash transfer but are less likely to spot a new customer with a good credit rating. 

How Credit Fraud Has Been Made More Accessible in A Modern World

  • Technology - We live in an interconnected world, with global supply chains for business, supported by the ease of communication that modern technology provides. Alongside these benefits, there has also been an increase in fraud, which over recent years has become increasingly common and sophisticated.
  • Lax Attentiveness - We take care more with our personal information, but many are less alert when it comes to fraud in business which creates opportunities for fraudsters.
  • Loose Government Regulations - Criminals are more patient and can rely on Government regulations designed to reduce ‘red tape’ and encourage entrepreneurs. For instance, instance, not everyone realises that Companies House is a simple repository for company accounts, and almost no checks are made on the information sent there. This makes the filing of false accounts extremely easy.
  • Our Addiction to Instant Responses - In our digital world, when we expect responses at the touch of a button, and the Fraudsters can rely on the use of algorithms and AIs to generate credit ratings, both by status agencies and credit insurers. Whilst it is good to get a credit decision quickly, sometimes a little time taken to look more closely at the information is invaluable and can save your business money.

How We Can Help

  • By providing advice on what to look out for and how best to protect your credentials from fraudsters.
  • By informing you on what types of fraud are/ are not covered under your credit insurance policy.
  • By advising you on what other steps your business can take to protect itself.

We have prepared a more detailed leaflet covering the typical types of problems we have seen. You can access the leaflet here or get in touch now to start protecting yourself again credit fraud.