Fraud

Asset Finance fraud is hiding in plain sight.

What are the protections in Asset Finance documentation, structures and assets? How can they be eroded? How do you manage your fraud risk? Is your fraud risk strategy pro-active, or ex post?

Through the analysis of 19 real world case studies that have cost the Asset Finance industry approximately £500 million we can illustrate how increased awareness and focused expertise could have avoided or significantly mitigated these losses.

It is impossible to prevent all fraud, using historical case studies we look at identifying the riskiest structures and mitigating the risks in them.

We will analyse:

Funder fraud

  • Benefits of the “4 eyes” principal

  • Segregation of duties

Supplier / Dealer fraud

  • Accessories

  • Ghost assets

  • Double or multiple funding

  • Connected lending

  • Billing and Collecting mandates

Leessee / Hirer fraud

  • Sale & Leaseback

  • Supplier Collusion

The role of Audit and Inspection vis a vis:

  • SOT

  • ghost assets

  • multiple funding of the same assets

  • Annual reviews

  • Credit appetite

Reporting

  • Portfolio performance by finance product and supplier