Fraud involving identical balance sheets: a threat not to be ignored
What is an identical balance sheet?
We speak of identical balance sheets when two separate companies publish financial statements presenting exactly the same accounting data, in particular at the balance sheet level: asset and liability items, turnover, net income, etc.
These similarities are rarely due to chance: they are a sign of organized fraud. In this type of scheme, either a fictitious company copies the balance sheet of another to give itself an appearance of solvency and financial stability, or the same fraudster duplicates an accounting balance sheet on several "clone" companies in order to multiply requests for financing, leasing, or loans that they never intend to repay.
Widespread in B2B , this scam particularly affects the automotive finance, leasing (cars, equipment, etc.), and business loan sectors. By presenting artificially strong financial statements, fraudsters seek to gain the trust of lenders or lessors. A seemingly healthy balance sheet is reassuring.
Yet, behind this facade, there is no tangible economic reality. These structures are merely empty shells. Their purpose? To quickly acquire cash or equipment before disappearing or declaring bankruptcy. When the fraud is orchestrated on a large scale, the creation of numerous fictitious companies allows fraudsters to solicit several institutions simultaneously, thus increasing the risk of widespread default.
Why are identical records so difficult to detect?
Fraud identical balance sheets exploits loopholes in the accounting filing system. Currently, when a company files its balance sheet, no rigorous checks are carried out, neither on the document's consistency nor its authenticity. As a result, fraudsters can easily falsify or copy a balance sheet and file it with the registry without raising any suspicion.
Because these falsified financial statements are officially filed, they are analyzed by financial rating agencies such as Altares, Creditsafe, and Ellisphere. Based on the published data, these agencies assign favorable financial indicators to fraudulent companies. Thus, a fictitious company can appear reliable and solvent, even though it does not exist or its financial statements are entirely fabricated.
This practice raises issues regarding automated detection and risk control. If identical financial statements go undetected by traditional alert systems, it is often due to a lack of data cross-referencing. Indeed, as long as companies are examined in isolation, everything appears normal. It is only by comparing financial data that fraud can be detected.
The problem is that this process, in addition to being lengthy and tedious, is almost impossible to complete without the right tools. This allows fraudsters to submit multiple funding requests using falsified accounting data, made credible by filing it with the commercial court.
The development of data analytics and artificial intelligence technologies would allow for more effective identification of these anomalies, but their use remains far too limited given the scale of potential fraud. In the meantime, fraudsters maintain a significant advantage.
Meelo is redefining the standards of the fight against financial fraud
How does the Meelo identical balance alert work?
Based on artificial intelligence algorithms, this tool is a first in the B2B anti-fraud market.
Innovative and reliable, the identical balance sheet detection system automatically and instantly identifies cases where two distinct companies present strictly identical financial statements . This capability makes it possible to uncover fraud networks that use the same falsified balance sheets across multiple companies.
Beyond its alerting role, the feature also detects unintentional errors in filing with the registry in order to help differentiate fraud from confusion, sometimes legitimate, between related companies (such as a parent company and its subsidiary).
A decisive impact in the fight against B2B fraud
financial fraud schemes in seconds, where manual verification would take hours or even prove ineffective. This represents a major advancement in the detection of large-scale scams, enabling fraudulent schemes to be uncovered from the outset and thus preventing significant financial losses.
Far more than just a compliance tool for granting decisions, the identical balance sheet feature is a true shield against financial risks. By identifying copied balance sheets from the outset, Meelo secures transactions, protects the reputation of the parties involved, and strengthens trust between business partners.
With its unique identical balance sheet detection , Meelo offers a concrete, fast and preventative response to the most sophisticated frauds.
