Small business lenders have been committed to elevating customer experience, which is a good thing, but it also creates the perfect environment for fraud. Lenders are focusing on streamlining the loan process, but that can make it easier for fraudsters to cheat the system. There are some common profiles fraudsters are using that include combinations of legitimate and fake businesses and real and bogus business owners or consumers.<\/p>\n
Study findings show that smaller banks and credit unions (<$10B in assets) and digital lenders are hit harder by SMB lending fraud. As a percentage of revenues, they\u2019ve experienced average fraud losses amounting to between 4.5% and 5.8% vs. 2.9% for larger banks (>$10B in assets). And, they\u2019re likely to expect fraud levels to increase over the coming year.<\/p>\n
Study results also show that organizations that reported that they\u2019re more effective at identifying SMB lending fraud actually are more effective. They\u2019ve not only largely prevented fraud increases over the past 24 months, but experience a lower level of fraud \u2013 3.0% of annual revenues (vs. 5.0% among those that are reported as only somewhat effective at identifying SMB lending fraud).<\/p>\n","protected":false},"excerpt":{"rendered":"
Small business lending fraud is a growing trend and it\u2019s a costly trend. All types of lenders are affected \u2013 large banks, small banks, credit unions and digital lenders.<\/p>\n","protected":false},"featured_media":48169,"template":"","meta":{"pmpro_default_level":"","tdm_status":"","tdm_grid_status":""},"product_brand":[],"product_cat":[1842,2347],"product_tag":[],"class_list":["post-76172","product","type-product","status-publish","has-post-thumbnail","product_cat-sme-finance","product_cat-study-library","pmpro-has-access","first","instock","shipping-taxable","product-type-external"],"yoast_head":"\n