“Fraud and corporate fraud are on the rise”

Scams and scams with businesses are on the rise. 51% of companies have had to deal with it within the past 2 years. 66% indicate that there is an increase in fraud. Much attention in the media has been devoted to the emergence of cybercrime, but the vast majority of fraud and fraud take place in the traditional way. With number 1: own employees who embezzle money or products or make false statements.

This is apparent from a survey conducted by Allianz Trade Benelux among Dutch and Belgian companies. In order to combat increasing fraud more effectively together with companies, the credit insurance company has recently been linked to the renewed platform Fraude.nl in cooperation with fraud and security expert Hoffmann and law firm Lexence.

Own employees
Most fraud is committed by our own employees (internal fraud). Examples of general fraud and fraud by own employees:

  • stealing products, ‘borrowing’ money from the till or giving discounts to friends and family;
  • sell or provide confidential business information to a competitor;
  • dealing with non-existent suppliers and creating false invoices for them;
  • transfer money to your own bank account without permission;
  • submit incorrect expense or time statements.

External fraud
In the case of fraud and fraud from outside (external fraud), invoice fraud is the frontrunner. More than half (53%) of companies have had to deal with this within the past 3 years. In invoice fraud, companies receive fake invoices that appear to be sent on behalf of well-known customers or organizations. Ghost invoices can hardly be distinguished from real invoices. Often, only the bank account number (and name) is different. Ghost invoices often involve relatively small amounts. The fraudster hopes that the ghost invoice will be processed ‘blindly’ in the daily hustle and bustle of the administration department.

Research design
200 Dutch and Belgian companies participated in this research. 62% of respondents have general or financial responsibilities (CEOs and CFOs). The participating companies represent a wide range of sectors, such as construction and installation (21%), agriculture/food (21%), metal (17%), chemicals (5%), transport & logistics (5%) and business services. (2%). 46% of respondents work for an organization with a turnover between 10 and 50 million euros.

buyer fraud
What also often happens with external fraud is so-called ‘buyer fraud’ (also called false buyer fraud). 41% of the companies that participated in the survey indicate this type of fraud, after invoice fraud, as the most common type of external fraud. Buyer fraud can have different faces. For example, goods are ordered on behalf of a regular customer of the company, but a different delivery address is specified. Buyer fraud is also when the buyer claims that he has not received an order, when in fact the goods have been delivered. A separate category of external fraud is so-called acquisition or advertising fraud, where ads are sold that are not or barely ‘delivered’.

When asked whether they have actually fallen victim to some form of fraud, just over half answer yes (51%). In 48% of the cases, there was damage of up to 50,000 euros. 10% had a loss of between 200,000 and 500,000 euros. And 1% even more than 5 million.

With this website, the 3 parties want to offer companies and entrepreneurs an informative platform for fraud issues. But also a place where they can go if they need (immediate) help. Every challenge is unique, no situation is the same. Sometimes a case requires the addition of a digital detective or a financial investigator. Another situation may require glasses from a psychologist or lawyer. And to prevent problems in the future, it can be interesting to take preventive measures or insure yourself against fraud risks.

For more information:
Allianz Trade

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