Home > Uncategorized > Fraud in invoice finance. Many thanks to Ashley Finance for notifying the market

Fraud in invoice finance. Many thanks to Ashley Finance for notifying the market

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To quote

The company is warning others to beware after two of its small business clients lost over £100,000 between them.

In both cases, which involved firms in Wigan and Manchester, the fraudsters met their victims at networking groups. They posed as genuine businessmen who had clinched a major order from a big company which they were unable to fulfill themselves and offered a share of the profits in return for help to buy stock.

“In both these cases the fraudsters had infiltrated networking groups, where people tend to assume they are dealing with bona fide businesses.

“They then cleverly use the conversation to identify firms with access to established factoring or invoice finance facilities, and claim to have won a big contract which they are unable to fund themselves. They persuade victims to buy stock and invoice them for it and, to build confidence, may even pay the first invoice.

“These are highly sophisticated fraudsters who catch people off guard, come up with a plausible story and even provide a viable paper trail using the names of real companies and directors who are unaware of what is happening. However frauds such as these can be devastating for small firms.

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