Fraud Risk Total Indicator
The Fraud indicator indicates the probability of fraudulent activity within this entity. The indicator is based on more than 40 parameters that are combined in a weighted algorithm and determines the risk of fraud. Main risk drivers in the Fraud indicator are location, historical events, activity, financials and the management of the entity.

Location

This risk driver indicates whether the address and location may raise concerns or could potentially be used for fraudulent activities.

For example: Locations with a significantly high number of bankruptcies may be flagged as suspicious.

Historical Events 

This risk driver assesses historical behaviours and patterns, based on official publications, and may indicate the possibility of fraudulent activities.

For example: An unusually high number of changes in company name or activities might signal concern. Another example is the publication of a capital increase without a corresponding deposit within the legal timeframe.

Activity

This risk driver examines whether the nature or registration of activities might suggest potential fraudulent behaviour.

For example: An unusual combination of different activities could be a sign of potential fraudulent intentions.

Financials 

This risk driver evaluates whether financial information appears irregular or exceptional, potentially indicating fraudulent activity.

For example: Irregularities in the filing dates of annual accounts or extreme financial ratios could raise red flags.

Management

This risk driver examines whether the management team or their connections may indicate a higher likelihood of malicious intent.

For example: The indicator looks at the mandate holder's past behavior and network connections, which could signal potential concerns.