Survey discovers small-business loaning scams on increase

Lending scams with little and midsize organizations has actually increased considerably over the last 12 months, and numerous banks anticipate it to become worse, according to a brand-new study by Lexis Nexis Risk Solutions. The study of lending institutions discovered the typical year-on-year boost in SMB loaning scams was 14.5%, compared to 6.9% in 2021. Nearly 3 in 4 participants anticipate the issue to become worse over the coming year.

SMB loaning scams losses most likely represented as much as 15% of total losses for the organizations surveyed. The typical worth of SMB loaning scams losses as a portion of yearly income was down somewhat at 5.5% compared to 6.2% in 2021, although it stayed greater than pre-pandemic levels. The study kept in mind that SMBs send over half of loaning applications through online or mobile channels, with a comparable percentage of scams losses credited to those channels. Still, banks and cooperative credit union reported a little uptick of in-person loan applications and scams losses as the majority of banks resumed typical in-person operations following the pandemic.


A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

Related Articles

Back to top button