Addressing fraud in vehicle asset finance
In the UK, the economic effects of fraud are increasing each year and a recent study by Crowe, Clark and Whitehill in Association with Portsmouth University found that in 2017 fraud cost the UK economy over £190 billion.
As a share of this figure, private companies were estimated to represent over £140 billion and as a result are increasingly finding it a challenge to deal with this problem.
"By adding intelligence from trusted partners into their application vetting processes not only can companies significantly enhance their ability to reduce false positives but they also reduce their vulnerability to being targeted.”
With the current UK government austerity measures adding a real squeeze on Local Authority funding, public sector services are also finding that the growing problem of public sector fraud (estimated at around £40 billion by the same study) is eating into their reduced budgets and increasingly risks affecting their ability to maintain high levels of service.
Despite these problems both private and public sector organisations are often blind to the scale of problems that are potentially inherent in their own organisations.
In a 2016 study by Kroll and the Economist Intelligence Unit over 75% of companies surveyed had been victims of fraud – despite often having no real organised solutions in place to address fraud.
75% of companies have been victims of fraud in 2017
So investing in solutions to try and address this issue is critical if organisations, both in the public and private sector, are to avoid losing ever greater sums to this type of crime. However, one of the reasons why fraud is so difficult to tackle is that it is a constantly evolving problem in nature - as criminals are constantly coming up with new methods and scams to try and get around defences that are put in place.
Additionally for financial services companies, the sheer volume of transactions that they are having to cope with, along with the speed at which new technology allows fraudsters to operate, makes it a very difficult issue to deal with.
One business sector that has been experiencing a significant range of fraud for many years is the vehicle asset finance marketplace.