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Originators in the commercial equipment finance and leasing industry serve as the eyes and ears of the entire industry; the first line of defense against unscrupulous activity. I’ve written on this topic many times, and once again it’s necessary to remind originators that bad actors don’t disappear. They adapt. They look for cracks. And they target the very professionals who work hard to provide businesses with efficient access to capital.
When the economy heats up or faces new pressures, vigilance becomes even more essential. Fraud attempts increase, creativity among bad actors rises, and the cost of a single mistake can be devastating. After reviewing several cases, the following reminders deserve renewed attention:
Trust Your Instincts
If something feels off, it probably is. Slow down. Ask more questions. Bring your concerns to colleagues — especially credit. A second set of eyes often confirms what your gut already knows.
Never Cut Corners
Policies and procedures exist for a reason. Work‑arounds create openings for fraud.
Complete the site inspection.
Don’t waive a guarantor signature without justification.
Ensure every document is executed properly and fully.
Shortcuts may save minutes today but can cost millions tomorrow.
Be Wary of “Too Good to Be True”
Relationships that materialize overnight, require no effort, or seem unusually eager should raise questions. The best vendor and end‑user relationships are earned through consistency, transparency, and mutual respect; not dropped on your desk like a gift from the sky.
Watch for Coordinated Fraud
Some of the most sophisticated schemes involve a vendor salesperson and an end‑user working together. Red flags include:
- A salesperson who insists you speak only with them
- An employee of a large company who discourages you from contacting anyone else internally
Isolation is a tactic. Don’t fall for it.
The encouraging news is that the overwhelming majority of people (99%) are honest and seeking legitimate financing. But it only takes one fraudulent transaction to wreak havoc across an organization. One fraudulent vendor relationship recently erased more than half of a company’s projected annual profitability and forced significant internal resources to be diverted to contain the damage.
Vigilance isn’t paranoia. It’s professionalism. And in today’s environment, it’s essential.
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