Fraud is frighteningly common in the UK and with over 80,000 cases of identity fraud reported already in 2011, there is no wonder why credit providing businesses are seeking protection from experts.
Providing finance solutions to consumers can be an effective way of driving sales through the door but without modern fraud protection tools in place, the business is exposed to deceitful customers. The forecasted figures may initially represent high sales but if a customer fraudulently avoids repaying then the revenue is never incurred from the sale and the business makes a big loss.
There are comprehensive tools available from certain credit reference agencies which enable for in-depth customer tracing, in order to recover debt. Such programmes are designed to pinpoint exact customer locations based on multitudes of data, sourced from a variety of state records.
Still, through the advice from these agencies there is an underlying notion that ‘prevention is better than cure’. More and more businesses are choosing to reinforce their initial customer screening system before approving them for credit. The approach is much more effective than chasing fraudsters all over the globe.
Know Your Customer policies are becoming more common amongst credit providers – requiring meticulous verification of customers/clients before establishing a finance agreement. However, it can be difficult for businesses to execute such detailed identity verification without the latest KYC assisting tools.
Some programmes can now verify customer data in seconds – adding a subtle but effective layer to a provider’s shield against fraud.
When operating through an agency it is important to determine if their solutions comply with current Anti-money Laundering legislations. If so, associating businesses can remain confident that their credit will only go out to legitimate customers and if a fraudster should slip through the cracks, they have the tools at hand to track them down and recover debt.