The Analysis News & Opinions
Opinion
Figures show major asset-finance drop off
New figures released last month show that total asset finance new business (primarily leasing and hire purchase) fell by 41% in June 2020 compared with the same month in 2019. In the first half of 2020, new business fell
by 32% compared with the same period in 2019. The business new car finance and
commercial vehicle finance sectors reported falls in new business in June 2020 of 55% and 44% respectively, compared with the same month in 2019. Over the same period, the business
equipment finance and plant and machinery finance sectors reported falls in new business of 36% and 28% respectively. The asset finance market provided almost
£2bn of new business in June, up from a crisis-low of only £1.2bn in May. The quarter end month of June is
traditionally a strong month for the industry, and with many businesses closed or operating well below capacity, it is not surprising that new business was more than 40% lower than in June 2019. The outlook for the economy remains
uncertain, with the industry facing a prolonged period of providing forbearance as a result of the crisis. We continue to urge the government and
Bank of England to take action that ensures support for all lenders, including non-bank lenders, so that they will be able to meet the demand for
forbearance and pent-
up demand for finance to invest in new equipment.
Geraldine Kilkelly Head of research and chief economist, the Finance and Leasing Association
Facts on fraud
The latest research has revealed that 2019 saw the highest ever number of cases of fraudulent conduct recorded to the National Fraud Database. Cifas found , in 2019 there were 364,643
cases recorded to the database, and this represents a 13% rise when compared to 2018. More specifically, there were three areas where the greatest rise occurred – identity fraud, misuse of facility and facility takeover, which all recorded the highest levels of cases over the last five years. Identity fraud rose by nearly 20% in 2019,
accounting for the largest number of cases recorded by Cifas members at 61%. People aged over 31 were specifically targeted by this type of fraudulent conduct, with victims aged 60 and over on the rise. The highest number of victims (68%) were recorded in the South East region. Cases categorised as misuse of facility
accounted for nearly a quarter of all cases recorded on the database, and this type of activity grew by 64% over the last five years. Bank accounts were specifically targeted,
with behaviours associated with money muling accounting for nearly three-quarter of these cases. Young people were particularly vulnerable
to this type of activity, with 62% of cases bearing the hallmarks of money mule activity involving young people under the age of 30. London recorded the highest levels of this type of activity, and this was followed by the West Midlands region which saw the most significant rise in cases. Facility takeover reached the highest level
ever in 2019 – up 105% over the past five years, with this type of conduct accounting for nearly one in 10 of all the cases on the database. The majority of victims were aged between 41-50 years old, with this age group seeing a 43% increase in cases last year when compared to 2018. In terms of products, telecom products were the most targeted,
accounting for over half of all the cases recorded to the database in 2019. However it was online retail that saw one
of the most significant rises in cases – 3,815 cases in 2019 compared to 1,903 in 2018, marking a 100% increase. The largest number of victims of facility takeover live in the London and South West regions. Overall, technology has played a key role
in facilitating fraudulent conduct, with 87% of identity fraud in 2019 occurring through online channels. Details are mostly obtained through smishing and phishing attacks, where victims are tricked into giving personal and financial information believing they were being contacted by legitimate organisations. Spoofing of websites of well-known brands
was also a key theme over the year, whereby a website is made to look like a known service provider to obtain personal details. Overall the largest number of cases
occurred in the London region, which recorded 31% of all recorded cases – twice the rate of the rest of the UK. This was followed by the West Midlands, the Eastern region and the North West regions. Nick Downing, chief intelligence officer
for Cifas, said: “We all need to take a step back and consider how we can change our behaviours. Businesses must look to how they can better safeguard their systems and protect their customer’s data, and individuals need to be constantly vigilant of fraudsters trying to steal their personal and financial information. “We know that the COVID pandemic
created new opportunities for criminals to steal money and information, and my concern is that the current economic uncertainty will fuel fraudulent activity even further. If we do not take action now, then without doubt, the high levels of fraudulent conduct we are currently seeing will just be the tip of the iceberg when compared to the coming year.”
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www.CCRMagazine.com
September 2020
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