# Battling the evolving fraud threat: The role of the credit team
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-06-07
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Global Economic Crime and Fraud Survey: Defending
Meta Description: Discover how integrating robotic process automation and intelligent automation can provide credit professionals with the tools needed to defend against evolving
URL: https://financedigest.com/battling-the-evolving-fraud-threat-the-role-of-the-credit-teamhtml

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_By **Raymon van Viegen,** CFO at Visma \| Onguard_

The [Global Economic Crime and Fraud Survey](https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html) conducted by PwC reported that the average number of fraud reported per company is a staggering six, with only 56% investigating the worst incident they faced.

These findings are particularly concerning when looking through the lens of the types of fraud that businesses have to battle in today’s world. Not only are bad actors posing as existing businesses to facilitate illegitimate transactions with suppliers, but others are also going to the lengths of creating fake organisations. Commonly acting as the gatekeepers to the business, this means that financial departments and [credit control teams are at greatest risk](https://www.financedigest.com/aon-assists-freddie-mac-to-reach-5bn-risk-transfer-milestone-for-u-s-mortgage-credit-business.html "AON ASSISTS FREDDIE MAC TO REACH BN RISK TRANSFER MILESTONE FOR U.S. MORTGAGE CREDIT BUSINESS") of facilitating access to fraudsters.

**Taking the defensive lead**

The screening process of a potential [client or customer is a necessity for credit control teams](https://www.financedigest.com/the-digital-voice-appointed-by-raft-of-new-clients-as-its-team-expands-by-270.html "The Digital Voice™ appointed by raft of new clients as its team expands by 270%"), helping them to decipher the validity of a potential transaction. Sales teams can also [play a role](https://www.financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumers.html "Why the bank branch still has a role to play for consumers") in advising in the case of a red flag or suspicious piece of information that doesn’t seem legitimate. Analysing bank statements, VAT [numbers and registrations with a chamber of commerce is a good starting point and can reveal any data](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data ") that may appear suspect.

While fraudsters are no doubt sophisticated in their methods, there are some tell-tale giveaways that an experienced [credit manager](https://www.financedigest.com/managing-trade-credit-and-insurance-in-the-context-of-international-commerce-expansion.html "Managing trade credit and insurance in the context of international commerce expansion ") can notice early on, such as an order from a country that the business doesn’t usually deal with, or an unusually high order value. Carrying out this due diligence at an [early stage](https://www.financedigest.com/valuing-your-early-stage-startup.html "Valuing your Early Stage Startup") is even more important as non-refundable transaction methods, such as bank transfers, become the norm over PayPal or credit card payments.

The good news for credit teams, however, is that they don’t [need to approach](https://www.financedigest.com/why-a-modern-organisation-needs-an-agile-approach-to-software-asset-management.html "Why a modern organisation needs an agile approach to software asset management") the screening process alone. Human oversight is always a potential possibility, but [technology can help support](https://www.financedigest.com/lulu-exchange-enhances-customer-experience-and-supports-expansion-with-move-to-fiserv-aml-technology.html "LuLu Exchange Enhances Customer Experience and Supports Expansion with Move to Fiserv AML Technology") professionals in their judgement. Many current platforms don’t provide the analytical assistance that credit managers need, with tools such as Excel and legacy ERP systems often lacking the ability to connect data internal [points or integrate with real-time data from credit](https://www.financedigest.com/how-to-raise-my-credit-score-40-points-fast.html "How to raise my credit score 40 points fast") reference agencies. This therefore leaves the credit [team without the much-needed end-to-end overview that could help them make a decision on whether or not to accept a new customer](https://www.financedigest.com/why-finance-teams-are-integral-to-the-customer-experience.html "Why finance teams are integral to the customer experience"). Without this real-time connected insight, [credit teams will find it much harder to provide](https://www.financedigest.com/providing-credit-managers-with-a-new-sense-of-visibility.html "Providing credit managers with a new sense of visibility") an agile line of defence against evolving fraud techniques.

![Raymon van Viegen](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/raymon-van-viegen-1-e1623089244286-1736838297675-compressed.jpg)

Raymon van Viegen

[**Integration with RPA and intelligent automation**](https://www.financedigest.com/from-excel-based-systems-to-automated-consolidation-and-data-integration.html "From Excel-based systems to automated consolidation and data integration")

Two [crucial innovations](https://www.financedigest.com/why-innovation-is-crucial-for-marketers.html "Why Innovation is Crucial for Marketers"), robotic process automation (RPA) and intelligent automation (IA), are key in providing credit professionals with the toolkit they need in order to battle the threat of fraud. A key [part of this is integrating](https://www.financedigest.com/what-is-id-and-verification-and-why-is-it-such-an-integral-part-of-digital-life.html "What Is ID and Verification and Why is it Such an Integral Part of Digital Life?") data from external risk management agencies such as Aon or Dun & Bradstreet, which can be done via API. For example, systems enhanced with RPA could play a key [role in automatically verifying whether a potential customer that fills in a form on a business’s](https://www.financedigest.com/the-evolving-role-of-the-cfo-from-scorekeeper-to-business-partner.html "The Evolving Role of the CFO: From Scorekeeper to Business Partner") website is who they claim to be. The same applies for addresses, with the option to connect [systems to cross reference against agencies such as Companies](https://www.financedigest.com/setsquared-companys-maths-system-adds-up-to-pitch-perfect-palace-success.html "SETsquared company’s maths system adds up to pitch-perfect palace success") House. Intelligent automation and RPA tools can also flag if an address is not in the location claimed by the potential customer, while also being able to alert the credit [team to blacklisted accounts](https://www.financedigest.com/what-can-accountants-learn-from-great-britains-olympic-team.html "What can accountants learn from Great Britain’s Olympic team?") and fake businesses that have attempted to fraud companies previously.

These technologies provide the combined benefit of allowing [credit teams to both flag potential bad](https://www.financedigest.com/4-ways-to-get-a-bad-credit-loan.html "4 Ways to Get a Bad Credit Loan") actors and speed up the screening process. In turn, whilst this accelerates the weeding-out of fraudsters, it also [enables the processing of a greater](https://www.financedigest.com/iris-acquisition-enables-accountants-to-add-greater-value-to-their-clients.html "IRIS acquisition enables accountants to add greater value to their clients") number of genuine transactions, benefitting the business doubly.

**Future-proofing** [protection against fraud](https://www.financedigest.com/protect-your-organisation-from-fraud.html "Protect your organisation from fraud")

The issues around screening potential new customers have been exacerbated by the [challenges presented by Covid-19](https://www.financedigest.com/how-can-banks-overcome-the-challenges-posed-by-covid-19.html "How can banks overcome the challenges posed by COVID-19?"). It’s much harder to check the validity of a potential transaction when it hasn’t been possible to [meet a new customer](https://www.financedigest.com/meeting-both-operational-and-customer-demands-how-insurance-can-adapt-in-a-disrupted-world.html "Meeting both operational and customer demands – how insurance can adapt in a disrupted world") face-to-face. Bad actors have been taking advantage of video conferencing and social media platforms to pose as employees of fake companies, which is why utilising the right technologies in order to detect fraudulent activities will be even more crucial – particularly as many employees continue to work from home for at [least part of their working week](https://www.financedigest.com/80-of-brits-admit-to-feeling-hangry-at-least-once-a-week.html "80% of Brits admit to feeling “hangry” AT LEAST once a week").

[Credit teams and managers are a crucial line](https://www.financedigest.com/austria-grants-credit-line-to-vienna-utility-squeezed-by-power-price-surge.html "Austria grants credit line to Vienna utility squeezed by power price surge") of defence against fraud, especially when assisted by the right technologies such as RPA and intelligent automation to help them make informed decisions. Empowering the credit team to help tackle the [fraud threat can help to reduce](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") the potential for bad debt, and in turn, help to future-proof the business in the long run.


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