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NACFB and Red Flag Alert partner to fight fraud

red flag fraud

The National Association of Commercial Finance Brokers (NACFB) has partnered with data analysis business Red Flag Alert in a bid to help protect brokers and lenders from fraud.


The NACFB and Red Flag Alert have agreed a three-year exclusive partnership to provide members with access to anti-money laundering (AML) and company credit checks.

The agreement sees the NACFB funding access for its members to Red Flag Alert’s AML, compliance, and risk management tools.

This includes company monitoring and director due diligence checks, as well as being able to run 6,000 free AML searches and reports, with discounts on subsequent searches.

NACFB Members will also be able to access insolvency and bad debt data, Companies House records and commercial credit reports on all companies.

Norman Chambers, managing director of the NACFB, said: “Criminals are exploiting the pandemic to illegally access cash.

“According to some estimates, last year alone, around £26bn was lost to Bounce Back Loan Scheme fraud and defaults.

“Brokers and lenders need protecting against these financial losses, whilst still being able to meet borrowers’ demands for quick, seamless services.

“The rich data and easy-to-use platform provided by Red Flag Alert will help empower our members to beat fraudulent applications and effectively satisfy genuine requests for finance.

“Financial crime and fraud is a relentless virus that’s becoming more and more sophisticated.

“We need disruptive tech and data, which has the power to tackle this, without making borrowing and lending cumbersome and time-consuming for all parties.

“We’d heard many positive things about Red Flag Alert’s services and how these were being successfully used by brokers and the finance community to enhance AML practices and compliance.

“It was natural choice for us to invest in bringing their services to our members and embrace these in the fight against fraud.”

Richard West, managing director of Red Flag Alert, added: “COVID has accelerated digital transformation within borrowing and lending, and transactions will become increasingly faceless.

“It’s critical that brokers and lenders can quickly and comprehensively complete Know Your Customer and Business checks to mitigate risk and enhance customer experience.

“Our partnership with the NACFB is very much geared towards this.

“It’s incredible to be partnering with such a leading organisation and we’re looking forward to developing the benefits we can offer members.

“Looking beyond risk management, data and insight has the potential to help brokers optimise sales and marketing through better verifying prospects.

“This is a forward-thinking, disruptive approach that’s already being embraced by the NACFB.”

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