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Jun 2022 | Credit Decisions | Data Insights | Data Quality | Financial Compliance | Fraud detection | Fraud Prevention
By Posted by Grant MacDonald

Companies often borrow money from lenders secured against the value of their assets, such as property and equipment.

Inaccurate Liabilities fraud happens when companies overstate the value of their assets to borrow more, while often understating the value of their existing liabilities with other lenders. In some cases, the assets declared don’t exist at all.

In the asset finance sector, lenders often look at the value of the asset they’re lending against.

We found:

Our Inaccurate Liabilities flag analyses discrepancies between a company’s liability position filed at Companies House, and the liability position captured by CAIS (Credit Agreement Information Sharing), helping you spot any potential concerns much sooner.

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exceeded the 10% discrepancy threshold – 3.5% of UK registered businesses.

Icon highlighting 6,452 zombie directors in the UK in 2022

when we looked at companies with a turnover of £25m+ only 39 questionable companies exist.

Official estimates predict that up to £5bn could be lost to asset finance fraud – with fraudsters applying to multiple lenders, setting up companies to claim after the pandemic had started, and applying on behalf of companies that had already been dissolved.

Read our infographic to understand more about the rise of asset finance fraud