One of the most notorious incidents of cyber crime to date also stands out for the bare-faced cheek and simplicity of the methods employed. When criminals targeted Austrian aerospace firm FACC, they didn’t bother trying to hack into the company’s IT systems, bring down firewalls with a DDoS attack, or plant malware on its servers to quietly mine sensitive data.
Instead, they simply impersonated CEO Walter Stephan, sending a fake email in his name authorising a junior member of the accounts teams to send $47m to what the email claimed was the bank account of a company Mr Stephan was negotiating to buy. It wasn’t, and the thieves made off with the biggest single haul in cybercrime history.
Figures taken from a government consultation into tackling late payment culture reveal that just one in 10 businesses paid late by clients take up the option of adding permissible charges.
The report published by the Department for Business, Energy and Industrial Strategy further confirms the shocking extent of late payments across the UK economy, with 97% of participants in the consultation saying they had experience of not being paid on time. More than a third of the businesses asked (36%) said more than half of their invoices were settled after the agreed deadline.
In our line of work, we come across some colourful characters to say the very least. We all know the stereotypes about the shady circles debt collectors have to move in. Well, while we’re not always keen on the cliches, the truth is in the course of recovering debts, we do have to deal with a motley assortment of fraudsters, conmen, chancers and career criminals, all often operating under the guise of supposedly legitimate business interests.
What we certainly never do is feel any ill will towards anyone we attempt to collect money from. At the end of the day, it is a professional service we provide, to look after the interests of the small business owners, freelancers and contractors who come to us, often at their wits end, to try to get back money that is rightfully theirs. But whoever it is that owes the money, and whatever their reasons for not paying their debts, they are still people.
One of the things suppliers are always advised to do before agreeing to provide any client with goods or services on account is to check their credit rating.
It’s a simple way to increase your own protection against serial defaulters and outright rip-off merchants. If a company or an individual has a good credit score, it means they haven’t got anything in their past that should give you cause for concern about their ability or intention to pay.
The number of County Court Judgments (CCJs) against businesses in England and Wales shot up by 12% in the first quarter of 2019, according to official figures from the Registry Trust.
A total of 35,779 CCJs were issued in the first three months of the year with a combined value of £107.2 million - a year-on-year increase of 6% from the same period in 2018. The figures show that judgments have gone up against both incorporated and non-incorporated businesses, part of a longer term trend which has seen the net value and frequency of CCJs increase.
Here’s a debt recovery story with a twist - a sales rep sues his erstwhile employer for unpaid commission, wins, and then discovers that the business unit he worked for has been shut down mid-action, with all its assets transferred to a new legal entity.
The upshot being, a year on from being awarded his claim in court, he is yet to receive a penny.
An initial review of payment practices under the government’s Prompt Payment Code has found 17 signatories in breach of the code’s commitments.
A total of five companies - BHP Billiton, DHL, GKN Plc, John Sisk & Son Ltd and Twinings - have been kicked out of the scheme completely for non-compliance and for failing to produce an action plan for how they intend to bring their payment practices in line with the stipulations.
It can’t be too often that small suppliers find themselves in agreement with notoriously hard-nosed retail tycoon Mike Ashley, owner of the Sports Direct Group. But on the subject of troubled department store Debenhams’ recovery options, there may be some common ground.
In the past week, Debenhams has secured a £200m refinancing package to help it restructure its debts, cut operating costs and rationalise its store holdings. Mike Ashley and Sports Direct, Debenhams’ biggest shareholder, are vehemently opposed to the plan, even going so far as to write to shareholders alleging misconduct from directors in a bid to get them to block the plans.
New figures exposing the extent of the UK’s late payment culture have revealed that more than 100,000 companies waited an average of 57 days for payment from clients last year - almost double the government’s statutory payment terms.
The research, carried out by insolvency specialist Begbies Traynor, found that one in 10 of these contractors and suppliers went out of business - 1000 firms in total.
New figures from the Insolvency Service show a shocking decline in enforcement actions against unscrupulous businesses since the government’s austerity programme was introduced in 2010.
According to the Service’s regular Enforcement Outcomes updates, the number of interventions to wind up companies in the public interest is set to decline again this year, the fourth consecutive annual fall. Over the longer term, in 2009/10 there were 267 successful petitions to close companies down, compared to just 73 in 2017/18 - a decrease of 73%. In the current year, with just a month to go, there have been just 57 completed actions.