Christmas is the period of greatest risk for application fraud and non-payment for Australian businesses, with young adults (young adults (aged between 18-22) the highest risk category, almost twice (1.8 times) as likely than any other age group to commit application fraud, new research has revealed.
These findings are from research conducted by Dun & Bradstreet that investigated customers that quickly increased their balance on a line of credit and then intentionally did not make any payments.
The research found applicants that commit application fraud are 25 percent more likely to occur in December than other months. That number increases to 36 percent in January, 77 percent in February and 60 percent in March before falling away significantly.
Dun & Bradstreet CEO Christine Christian believes the research provides Australian companies with a compelling reason to know more about their customers before committing to any forms of credit.
The very definition of fraud is evolving and Australian companies need to know more about their customers to reduce this risk,” she said.
“All firms need to gain a clear understanding of their exposure to both failure and late payments and manage their customers and suppliers accordingly,” she added.