- 89% of lenders surveyed noted an increase in fraud last year
- 81% expect this increase to continue this financial year
Lenvi Riskfactor, the leading provider of risk management software for the receivables finance industry, today announces the launch of its 2023 European Fraud Readiness Report. The report reveals a detailed picture of how fraud has affected receivables finance lenders in recent years, how it might affect them in the future, and how strategies to prevent fraud are being developed in four key European markets: the United Kingdom, France, Spain, and Germany.
Almost nine out of ten (89%) respondents across the four markets noted an increase in fraudulent activity against their businesses in the last year; with more than eight in ten (81%) expecting a continued increase through the current financial year (23/24).
This issue is compounded by the perception that fraud is becoming even more sophisticated – a trend reported by almost three-quarters (73%) of all responding receivables finance lenders. As a result, lenders are increasing their budgets for fraud prevention, by an average of 39% year-on-year.
In spite of this, even the lenders with the highest confidence in their fraud prevention abilities – some 40% of respondents – estimate that they fail to detect one in every four fraud attempts made against them. Nearly a third (30%) of lenders believe they were unable to detect half of all fraudulent activity in the past year.
Looking ahead to the remainder of the financial year, 70% of all receivables finance lenders recognise fraud to be a significant risk for their business; with this figure rising to 83% for lenders with less than 250 employees.
Whilst increased spend on fraud prevention does little to mitigate concerns, there is a clear link between a lender’s adoption of technology and the extent to which their business is concerned by the threat of fraud. 84% of lenders with a predominantly manual-led approach to fraud prevention note fraud to be a significant or high risk, dropping to 70% among lenders with a technology-led approach, and 66% for those firms utilising a blended strategy.
Please click here to download the report in full.
Ahmed Amin, Lenvi Riskfactor Sales Director, comments: