Receivables finance fraud is on rise


The receivables finance industry faces a heightened risk and development of fraud. Due to the opportunistic nature of the post-pandemic environment, abrupt change in working practices, as well as increasing pressure on organisations, their customers, and their supply chains, fraud is on the increase. With rogue employees, and a pandemic that has provided huge money-making opportunities for scammers, the receivables finance sector has never been more susceptible to fraud, seriously damaging the credibility and reputation of banks.

In order to support the players to protect against it, BCR Publishing is organising a Fraud Online Masterclass on Thursday 3rd December 2020, 9.00-13.30 GMT.

By attending this advanced and comprehensive Masterclass you will identify the latest measures on how to detect and prevent fraud, as well as understand how to manage it when it occurs, minimising the effect on your business.

You will be able to:

  • ASSESS the risk of fraud associated with factoring and payables finance transactions;
  • UNDERSTAND the impact of the pandemic and how to mitigate these risks;
  • IDENTIFY signs of fraud, devise and implement strategies to protect your business;
  • APPLY different techniques to resolve common issues that may lead to fraud;
  • IMPLEMENT best practices to manage fraud.

This Masterclass is designed for people who already have a working knowledge of receivables finance arrangements like receivables finance practitioners, risk and compliance professionals or finance directors.

The Masterclass will focus on the nature of fraud; how it is perpetrated; the impact of the pandemic; and the rapid evolution in the nature of fraud practice.

In Section I Robert Parson, Partner, Clyde & Co LLP, will discuss fraud landscape. This session will analyse these components of fraud, how they arise, the incentives and circumstances and the particular influence of COVID pressures.

This section will address:

• Pressure, opportunity, and rationale

• Circumstantial fraud – pre-invoicing, optimistic invoicing, and short-term bridges

• Examples of intentional fraud and organised crime

• The ‘COVID factor’ and fraud opportunism

• Digital trade finance – risks and rewards

Alecsandra Valasuteanu, Head of Factoring, UniCredit Bank Romania will give us her insights on detection and prevention during Section II of the webinar.

Detecting fraudulent invoices and factoring fraudsters in preventing large losses and giving more security to factoring companies has never been more important. Identifying potential red flags and reducing risk with effective management is critically important.

This part of the masterclass will demonstrate how to reduce exposure to fraud through prevention and protection.

This section will look at:

• Initial checks and common warning signs of suspicious transactions

• On-boarding detection to mitigate potential losses

• Protecting your business through a range of defensive measures

• Introducing multi-level approval processes

• Creating and following procedures to monitor invoices against fraud

John Beaney, Director, Product and Propositions, Global Trade and Receivables Finance, HSBC, will discuss the management and risk reduction in Section III of the online masterclass.

With fraud on the rise, it is critical that practitioners understand the latest methodologies tackling it, to manage and minimise the risk to their business when it does occur. This segment of the masterclass will analyse these components, identify the benefits and disadvantages of each and examine the different ways that they can be combined to reduce the impact on receivables finance.

This section will explore:

• How to implement best practices to manage fraud

• The steps to take to limit the effect when fraud is identified

• Training, processes and systems support

• Increased security measures to protect client data

• Internal risk management measures

Don’t miss this opportunity and register here for the Fraud Prevention and Management Virtual Masterclass - places are limited!