Helping prevent fraud
Cranes & Access|April/May 2020
The number of rental companies and contractors reporting cases of fraud leading to non-payment or the loss of equipment is on the increase and likely to get worse as the industry moves to more online transactions and less face to face contact. UK-based credit agency Top Service provides some interesting perspectives and sound advice
Helping prevent fraud

The equipment rental and construction industry’s exposure to fraud is changing and businesses operating in the sector need to put in place robust processes to help mitigate their risk to fraud both on and offline. With the rental and construction industries contributing around nine percent of Europe’s total economic output, it is not surprising that the sector is a valuable target to fraudsters. This is further exacerbated by the view that the industry still operates largely offline with traditional processes and all too often hands over high-value equipment with the minimal of checks.

The reality is that the continuing drive towards online transactions, Building Information Modelling (BIM), automation and cloud-based management systems, exposes a sinister collaboration between cybercriminal and fraudster. The risk of delays due to fraud and cyber-attacks can not only damage profitability, but also reputation and for an industry which relies heavily on strong customer relations the risk to reputation could easily outweigh the financial loss.

Fraud includes a wide range of crimes such as forgery, credit scams and insider threats involving deception in order to commit theft. The risk to businesses is not just the immediate financial loss but in some cases companies could receive third-party litigation if a data breach is deemed the result of inadequate safeguarding of information.

Industry associations and credit reference agencies are seeing more and more potential fraud being reported, ranging from bone fide company details being used without a company’s knowledge, to fake companies being set up in an effort to obtain goods fraudulently.

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