22 January 2004: Fraud in factoring features at Rome conference
Getting into factoring is easy, staying profitable is getting much harder. One of the biggest threats to factoring profits is fraud. Anecdotal evidence suggests that fraud in factoring is increasing fast. Because factors work on high volumes and small margins, the impact of fraud can be devastating. Fraudsters are becoming increasingly sophisticated and therefore more difficult to stop. With annual factoring volumes in Europe exceeding €500bn, the sums involved in fraud are getting very large with serious consequences for factors.
Factoring fraud is usually perpetrated through fictitious or 'fresh air' invoices being sold to factors. Increasingly, fraudsters are using information technology to perpetrate and control more complex frauds, particularly where foreign jurisdictions are involved. One such scam, involving the non-payment of large amounts of VAT, is known as 'carousel fraud'. Here, innocent traders and funders can get caught up.
The latest causes and methods of tackling fraud in factoring is just one of a number of important factoring and asset-based lending issues being discussed at Receivables Finance International 2004, which this year is being held at the five star Grand Parco Dei Principi hotel in the heart of Rome on the 18-19 March. The conference, which is organised by BCR Publishing in association with Factors Chain International and International Factors Group, attracts senior factoring executives from Europe and beyond.
Speaking will be the industry's most respected experts and leaders, including Ted Ettershank, managing director of Lloyds TSB Commercial Finance, Dirk Driessens, CEO Fortis Commercial Finance, Ann Horan, managing director, Bank of Ireland Commercial Finance and chairman of the Factors and Discounters Association, Alan Mclaren, managing director, GMAC Commercial Finance plc and Michel Aussavy, chairman, GE Factofrance. They and others will be providing their thoughts and ideas on how to take the industry forward in an increasingly competitive environment.
Fraud Panel
Simon Boon, Partner, Banking and Finance Litigation Group, DLA
Robert Weekes, Partner, Finance Law, Hammonds
Barbara Kohl, German Factoring Association and Bette - Brink Lawyers
Simon Michaels, Senior Partner, BDO Stoy Hayward
Receivables Finance International 2004, Grand Parco Dei Principi, Rome, 18-19 March 2004.
Full programme and booking form (PDF)
Or contact BCR Publishing on +44 (0)20 8466 6987.
Source: BCR