IFA Factoring Conference 2017 in Review: Experts Speak on Fraud in Factoring


By Bibby Financial Services

24 Apr 2017

The Factoring Conference has something for every industry professional – from the novice to the experienced.

As an opportunity to forge new connections and reunite with old colleagues, the annual IFA Factoring Conference continues to be an invaluable industry event.  With the educational panels, speakers and round tables, the Factoring Conference has something for every industry professional – from the novice to the experienced.

The 2017 IFA Factoring Conference featured dynamic speakers including Dr. Beck Weathers, survivor of the 1996 storm that killed 8 climbers on Mount Everest, and business strategist Dan Burrus, author of several books on technology and business strategy.  Conference attendees also had their choice of a number of roundtable discussions and expert panels covering a broad range of topics such as “What Factors Can Learn from the Fintech Disruption”, “How to Factor Chinese Receivables” and “Understanding and Motivating the Millennial Generation”.

The expert panel on “Fraud in Factoring” featured seasoned BFS executives Chief Operating Officer Jeff Morse and EVP-General Counsel Kim Withrow and was moderated by Harvey Friedman, COO of Lenders Funding. Fraud is an issue which all factoring companies and factoring professionals must prepare to combat and become educated to prevent. The panel dissected actual cases of fraud they’d seen firsthand, from the first subtle warning signs to the disturbing discovery and often harrowing aftermath, as well as deals they had declined because of suspected fraud.  Legal expert Kim Withrow stressed thoroughness in due diligence and verifications to detect fraud as well as best practices, including documentation provisions and post-closing steps, any factoring company can implement to prevent it. 

Practical takeaways from the “Fraud in Factoring” expert panel:

  • Implement internal processes and procedures for managing risk and follow them.
  • Set operational conditions based on risk issues specific to each deal.
  • Flag and monitor unusual changes, i.e. new customers, fluctuations in invoice size or payment patterns, and dilution.  A high growth in sales is often an indicator of fraud as is the lack of incoming cash.
  • Regularly review client performance and KYC (Know Your Customer).  Analyze trends, run ongoing searches and background checks.  Google everything.
  • Ensure that staff members allocated to manage an account are suitably experienced to handle it and familiar with your fraud prevention policies.
  • Be aware of any economic, political or environmental factors that may impact your client.

In short, the best way to prevent fraud is to know as much as you can about the companies you’re dealing with and the people behind them.  Your vigilance will be rewarded.

To learn more about Bibby Financial Services and how we can help your business, contact us today at marketing@bibbyusa.com or at 877.882.4229.

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