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UK businesses turn to technology to out-flank fraudsters

British businesses are among the most concerned about fraud in Europe. However, they are also most confident that their defenses remain one step ahead of fraudsters.

Financial services risk management software provider Lenvi Riskfactor surveyed 207 senior decision makers influential and involved in credit facility services, working for businesses in France, Germany , Spain and the UK. This research reveals a detailed picture of how fraud has affected accounts receivable financing lenders in recent years, how it may affect them in the future, and Fraud prevention strategies are being developed in four key European markets: UK, France, Spain and Germany.

Headline results show that 89% of respondents across four markets noted an increase in fraudulent activity for their business over the past year. At the same time, 81% expect the increase to continue in the current financial year. But some markets have been hit harder than others, while some are also much better prepared.

Source: Lenvi Risk factors

Among all respondents, 32% said they had seen a significant increase in fraud in the current financial year – peaking in Spain, where 54% said as So. The country was the only country polled where a majority of respondents said the situation was changing significantly – while the UK and Germany had lower rates at 26% and 13% respectively.

This may partly be due to Spain’s reluctance to invest in technological anti-fraud mechanisms. Over the next 12 months, 57% of respondents in Spain said they will rely more on manual data entry to prevent fraud. At the same time, they will only increase their reliance on technology by 17% – in contrast to the UK, where most businesses will invest in technology defence, by 55%.

Greater investment in technology to weed out fraudsters may be the reason UK respondents seem less concerned about the ‘sophistication’ of fraudsters. In direct proportion to their own defences, 65% of UK businesses believe fraudsters are becoming more sophisticated. While this is still high, it is much lower than the 80% seen in Spain and France.

Source: Lenvi Risk factors

However, in general, European businesses are still confident in their ability to prevent fraud. Four in ten companies said they successfully identified and stopped more than 75% of fraudulent activity. But again, some work better than others. Considering the nation’s belief that scammers are not becoming much more sophisticated in their efforts, it is perhaps unsurprising that the UK leads on this front.

49% of UK businesses say they have prevented more than three-quarters of attacks on their company. Spain follows closest with 40%, but Germany, on the other hand, lags some distance behind – with only 32%. However positive the performance of British businesses against hostile actors may be, the researchers sound a note of caution.

Ahmed Amin, Lenvi Riskfactor Sales Director, commented: “Whatever strategy lenders deploy to try to address and repel the growing threat of fraud, this is not the time for complacency. Instead, companies need to develop and improve fraud prevention methods, based on an effective combination of technology solutions and human expertise – as well as the readiness of business leaders. in taking responsibility for addressing and minimizing fraud risks. Businesses in the accounts receivable finance industry will need to be diligent and remain vigilant if they want to continue to protect themselves and their customers from fraud risk in the years ahead.”


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