Most searched: Contact EQ Broker Info

U.S. Receivables Finance Market Sees Biggest Increase In Fraud And Business Failure In 2020

Tuesday, August 3, 2021

New global receivables finance report shows impact of COVID-19 on fraud across U.S. and Europe.

EQ Riskfactor, the risk management specialist and part of EQ (Equiniti plc), launches volume two of its Receivables Finance Global Outlook report series – “Technology – the route to resilience” today.

Respondents from the receivables finance industry stated that fraud had increased by 63% in the U.S. throughout 2020, more than double the global average of 30%. Similarly, the U.S. saw the biggest increase in business failure, with 59% of respondents asserting the level had increased in 2020 – a stark contrast to the U.K. which saw a 60% decrease in 2020 business failure. 

Other key findings include:

  • The U.S. and the Netherlands were the only countries where fraud increased; the rest of Europe saw fraud decrease
  • Lenders remain optimistic as clear signs of economic recovery continue to emerge
  • Investing in technology will be the driving force for future resilience

Michael Ellis, managing director of EQ Riskfactor, comments:

“It is worrying that in the U.S, almost two-thirds of respondents saw fraud increase compared to the previous year. Respondents also felt that COVID-19 led to greater levels of business failure, with 59% stating it had increased – almost double the global figures. These figures clearly suggest that the U.S.’ most recent $1.9 trillion stimulus package has been allocated to many other purposes rather than exclusively business support. It’s all the more vital therefore for lenders to use technology to mitigate risk and prevent fraud, supporting this with highly trained teams.

“Receivables finance is the perfect vehicle to support ongoing economic recovery, as businesses unlock working capital for their growth. This need for capital, coupled with government support coming to an end, creates ideal conditions for increased fraud – and unsurprisingly, our report clearly shows this to be a growing threat.”

The full report is available to read and download here:

<ENDS>

 

For more information

About this report:
James Hennigan / Georgia Burns at Galibier PR
Tel: +44 (0)7811 096717 / +44 (0)7504 818171
Email: james.hennigan@galibierpr.co.uk / georgia.burns@galibierpr.co.uk

About EQ:
Olivia Peters at Tulchan Communications
Tel: +44 (0)20 7353 4200
Email: Equiniti@tulchangroup.com

 

Notes to editor

About EQ Riskfactor

EQ Riskfactor’s established risk management technology, already used by 95% of U.K. industry receivables, uses automation to identify potential frauds and advanced analytics to highlight unusual activity. The technology enables lenders to then investigate and reduce risk, and in turn scale up faster and at less cost by helping them to eliminate manual processes.

EQ Riskfactor is part of EQ (Equiniti Group plc), an international technology-led services and payments specialist. With over 5,000 employees, it supports 36 million people in 120 countries. EQ’s purpose is to care for every customer and simplify every transaction, delivered with less of an impact on the environment.

EQ is listed on the London Stock Exchange as Equiniti Group plc.