A recent survey conducted by PwC France and Mahgreb from November 2020, entitled ” Global Economic Crime and Fraud Survey, showed that 47% of companies have been victims of fraud in the last 24 months worldwide. France, this figure climbs to 53% with an average of 5 cases observed per company over the same period.
The health crisis is an aggravating factor regardless of the types of fraud involved.
Globally, the losses incurred by companies responding to the survey amount to $42 billion. For France, this figure reaches 1.4 billion dollars
Internal controls are the first means of identifying fraud for 60% of companies worldwide and 62% in France
Only 39% of French companies that experienced a significant incident conducted an investigation after the event, compared to 56% globally
The financial difficulties of companies, the generalization of remote working and the necessary changes in supply circuits are all situations conducive to fraud.
Fraud is a recurring risk that can lead to significant financial losses, which is why we give you all the techniques to check if you can trust a company or
Visit the company’s website
Look on the company’s website for specific things that might reveal whether the company is really legit or not.
Check spelling and grammar
If you notice recurring bad spelling or bad grammar on a website that claims to be a French company, the company may be based abroad. This should come as a red flag if the company claims to be a local business doing business near you for example. It is therefore wise to carry out further research before dealing with it.
Find a business address and landline number
Every website should have a business address and a landline for potential customers to get in touch with. Check both, try phoning the business and searching Google Maps to verify that it is an office and not a fraudulent address.
Check privacy policy
You should also research the site for a privacy policy and company history, which may include how long the company has been in business, its ethical stance, and its mission statement. Typically, the privacy policy also confirms the business address and company name of the company, allowing you to conduct official research on the creditworthiness of the company via reports , available on information sites commercial & financial such as Creditsafe.
Find a business number (SIREN)
This may be part of a company’s privacy policy or terms and conditions. Every limited liability company in France has a SIREN number, and this must be displayed with the place of registration on its website due to legislation.
Consult the Afnic database
The Afnic site allows you to check the information relating to the holder of the domain name and sometimes to confirm a commercial address and a contact name. It will also provide you with useful information, like the domain name registration date, so you can understand how long the website has been running. If the website was only recently registered or if the domain name holder information is protected, this may be a sign that the company is not genuine.
Check official sources
Check whether the company is listed in an official company register such as INSEE or obtain a detailed report from a certified information provider such as Creditsafe.
They will have to register their company there, the site will be able to tell you the address of the head office, the status of the company and the type of company. It can also tell you things like the date of incorporation and the names of previous companies.
If a company offers financial services or related products, you should be able to see on the AMF website whether or not it has been sanctioned. On the other hand, you can also consult the DGCCRF website if the company has been subject to a sanction for non-compliance with payment deadlines, for restrictive practices of competition, for unfair terms, etc. In the event of a sanction, we obviously advise you not to enter into commercial relations with it.
Perform a business credit check
If you’re unsure of a company’s creditworthiness or want to know if they have the funds or credit to pay your bills in 30 or 60 days, it may be worth doing a credit check. . Creditsafe is one of the most reliable risk management systems and will allow you to verify a company’s payment capabilities and behavior before entering into contracts and agreements with it, to ensure the best possible business relationship. serene as possible.
