The phenomenon of BtoB fraud has grown considerably in recent years, affecting mainly large companies. Among the various increasingly sophisticated methods used, so-called "shell" fraud is now widely favored by fraudsters. Against this backdrop of professionalized fraud, which generates financial and reputational damage for companies, it is imperative to reinforce security and preventive risk management. Based on weak signals combined with artificial intelligence, Ellisphere can help you to identify upstream companies whose sole purpose is to commit fraud. The fraud risk score enables your teams to prioritize the riskiest cases, and ultimately avoid financial loss.
Empty shell fraud: Automate fraud detection to secure new business relationships
In recent years, increasingly sophisticated fraud techniques have led to a considerable increase in financial losses and reputational damage for companies, amplified by digital transformation. The so-called "empty shell" technique has been democratized, contributing significantly to this danger.
But what exactly are we talking about? 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 insofar as it has a real existence (legal events, balance sheets, etc.), but is created or taken over for the purpose of fraud.
In this context, it is necessary to reinforce security measures and preventive risk management, particularly for digitalized organizations, by automating controls at the start of the relationship.
Ellisphere's fraud risk score: detect empty shells upstream to secure your cash flow and boost productivity
Ellisphere supports you in this fight against fraud, with an innovative solution: the fraud risk score. Based on multiple weak signals from our database, combined with artificial intelligence, the Fraud Risk Score enables you to rapidly detect anomalies that can be assimilated to high-risk profiles.
Indeed, with the explosion in fraud attempts, studying files manually is not an option given the lack of time available to teams, who can't check every potential fraud criterion for each file. Automation is therefore a necessity.
Setting up a fraud risk score will enable you to :
Secure your cash flow :
by identifying upstream companies whose sole purpose is fraud, you avoid high financial losses. At the same time, you compensate for a lack of control over potential empty shells.
Improve the productivity of your teams:
process automation optimizes processing times. Your teams can then concentrate on the most complex and risky cases.
AI in the fight against fraud...
More concretely, how does the fraud risk score work?
Available on French companies, this score combines business criteria and Artificial Intelligence (AI), in order to spot fraud based on various weak signals, such as:
- Company profile
- Geographical criteria
- Legal events
- Balance sheets:
After scoping with our teams, this score can be implemented in just a few days, and is available via API.
We customize the fraud risk score and its indicators according to your portfolio of third parties and your business sector, to optimize the relevance of the score and its results.
Depending on your resources and the volume of files you handle, you define a threshold (a risk level) above which your teams will manually review the riskiest files, and below which the decision is automated.
You also benefit from the fraud cases identified by our other customers:
- When a customer reports a suspicion of fraud on a third party, the latter is suspended for the duration of the verification.
- Once a case of fraud has been validated, all customers benefit from the information.