On 2 June, an article in FT Adviser says that cash-strapped businesses grappling with the cost of the pandemic are increasingly securing loans against the value of unpaid invoices, or ‘factoring’, but this has seen criminals keen to exploit the opportunities of this growing market.  The article poses the question: what is factoring fraud and, more importantly, how can it be prevented? It says that the aim of the fraud is to obtain money from factoring fictitious debtors, by forwarding false invoices to the factoring company.  The fraud can be perpetrated in several ways.

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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