In recent years, we have witnessed an explosion in the phenomenon of BtoB fraud: while identity theft and transfer fraud account for a large proportion of this, the "empty shell" technique has also become widespread. The professionalization of fraudsters and the amplification of this risk mean that Finance Departments have no choice but to automate the detection of companies whose sole purpose is to commit fraud, in order to improve productivity, secure cash flow and avoid any financial or reputational impact.
Empty shell fraud: A very real threat
Financial departments and risk professionals: Today, you are faced with an upsurge in fraudulent BtoB practices, amplified by digital transformation and the development of cybercrime.
Transfer fraud and identity theft are among the most widespread types of fraud, but so is "shell" fraud.
The "empty shell" technique consists of creating a company with a straw manager or representatives of companies abroad or which no longer exist. It's a real company in the sense that it has a real existence (legal events, balance sheets, etc.), but is created or taken over for the purpose of fraud.
In concrete terms: The fraudster performs useful legal events to suggest that the company is running a "normal" business: for example, he applies for a financing loan, which he will never repay. Or he buys/rents your services (temping, equipment, etc.) and asks to pay later: this debt will never be honored and the supplies will be resold.
Two major challenges: securing your cash flow and optimizing your teams' productivity
As these types of fraud become more powerful and professionalized, your organizations run a greater risk of financial loss and reputational damage, and you need to step up your security and preventive risk management measures more than ever.
Over and above the financial and reputational impact, your challenge is also organizational : manual, time-consuming checks are no longer an option, given the lack of time for teams who can't check every potential fraud criterion for every file.
Automating controls at the point of entry into the relationship is therefore becoming necessary, to compensate for the asymmetry often observed between the resources deployed by fraudsters and the systems put in place by companies.
Fraud risk score: Spot empty shells early to avoid financial losses
In this context, Ellisphere offers you an innovative solution: the fraud risk score, which is designed to check the validity of the company, in order to identify "empty shells" at an early stage.
Based on multiple weak signals from its database, combined withartificial intelligence, the Vigilance Score enables you to rapidly detect anomalies that can be assimilated to high-risk profiles. It enables your teams to achieve productivity gains by prioritizing the most complex and risky files.
Detect fraud-prone companies preventively, by spotting empty shells, based on weak signals combined with Artificial Intelligence. Your teams gain in productivity and prioritize the most complex and risky cases.
Would you like to benefit from Ellisphere's expertise?
Would you like to benefit from Ellisphere's expertise?
To find out more about the Fraud Risk Score, contact us today. Our experts will answer all your questions.
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