Incidents of fraud, including identity theft and first- and third-party borrower fraud, have increased by 10% or more among equipment finance companies over the last two years, according to a new study from the Equipment Leasing & Finance Foundation.
The study, titled “Fraud in the Equipment Leasing and Finance Industry,” analyzes fraud in the equipment leasing and finance industry with an examination of the multifaceted nature of fraud, its financial impacts, evolving challenges faced by lenders of various sizes, and solutions to address and mitigate fraud.
The study was commissioned by the foundation and prepared by Kassem Consulting and Datos Insights. It utilized a multipronged approach, including a survey of Equipment Leasing and Finance Association (ELFA) members, in-depth interviews with executives from varying sizes of lending institutions, and an analysis of current fraud trends.
“Fraud in the equipment leasing and finance industry is ever-changing, and this study is designed to help businesses meet the challenges to stay ahead of it,” Valerie Gerard, research committee chair for the ELFF and co-CEO of The Alta Group, said. “The study reveals current fraud practices and comprehensive strategies, including types of solutions and advanced technologies companies can deploy to combat evolving fraud threats effectively.”
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!