Supply Chain Finance check0 / 1 answered · 0 correct
Check 1
Can an electronically matched invoice still be fraudulent if the underlying trade is fictitious?
Supply-Chain Finance Risk and Fraud Checks
Duplicate invoices, fictitious trade and concentration can defeat a good-looking structure.
Duplicate financing
The same invoice or inventory can be pledged/financed more than once if controls are weak. Unique references and data reconciliation help reduce this risk.
Fictitious trade
Fabricated invoices between related or shell companies can create apparent receivables without genuine goods/services.
Concentration
Dependence on one buyer, supplier, platform or insurer can create hidden correlated risk.
Data does not replace judgement
Automated matching improves control but bad source data, collusion or compromised systems can still produce losses.
Standards / source note: Supply-chain-finance terminology is guided by the Global Supply Chain Finance Forum definitions, while the actual legal, credit and operational structure remains transaction-specific.
Remember thisDigital does not mean risk-free; controls must connect data to real trade and real parties.
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