Crime Comes to SMB Lending

Many financial institutions lending money to small and midsize businesses are sitting ducks for criminals.

Boston, April 30, 2019 – The booming SMB lending business in the U.S. is hell-bent on growth, keen to avoid process friction, and unseasoned in the face of an unfamiliar threat—criminals who have perfected their techniques in the consumer lending market for decades. This industry is aggressively deploying a large volume of capital as loans to SMBs, and its competitive zeal leaves an attractive entry point for both experienced criminals and otherwise legitimate market participants indulging in credit abuse.

This report shares insights on fraud incident rates, the virulence of various fraud vectors, historical trends, and financial institutions’ self-assessed levels of preparedness to deter fraud in their SMB lending lines of business. The findings in this report are the result of a survey undertaken by Aite Group and the Small Business Financial Exchange Inc. between December 2018 and February 2019 of 43 U.S. financial institutions extending loans to SMBs.

This 23-page Impact Note contains 12 figures and five tables. Clients of Aite Group’s Fraud & AML service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Acxiom, AimBrain, BehavioSec, BioCatch, DecisionLogic, Deluxe, Dragnet Solutions, Early Warning Services, Emailage, Entrust Datacard, Equifax, Experian, FIS, Fiserv, Giact, ID Analytics, IdentityMind, IDology, InAuth, iovation, Kofax, Kount, LexisNexis Risk Solutions, Melissa Data, MicroBilt, Neuro-ID, Neustar, NuData Security, OneSpan, Paynet, Pindrop Security, RSA Security, SecuredTouch, Small Business Financial Exchange, Socure, ThreatMetrix, TowerData, TransUnion, Trulioo, and Whitepages Pro.

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