In Luxembourg, documentary fraud is not a marginal phenomenon. In 2024, the Grand Ducal Police would have counted 6382 cases of fraud affecting both individuals and businesses in Luxembourg. And in a strict regulatory environment, where compliance and transparency have become strategic priorities, ignoring the consequences of document fraud can be expensive.
In this article, Finovox explains to you what the 4 concrete repercussions of this type of fraud are. Our objective: to create a framework to help you anticipate risks before they catch up with you.
In a country as exposed as Luxembourg, fraud is no exception to the global trend. That of a digital crime, invisible, and difficult to counter. Among its most common and underrated forms: document fraud.
Concretely, the term documentary fraud refers to all the manipulations or falsifications carried out on a document in order to mislead. This can come in a variety of forms:
For businesses, the threat is very real. This is even more true in a country like Luxembourg, where compliance requirements are particularly regulated.
Luxembourg is a country where safety and regulatory standards are high. Whether with respect to their customers or their commercial partners, companies therefore have every interest in protecting themselves from the consequences and risks of document fraud.
Financial loss is the most obvious consequence since in Luxembourg, the cost of document fraud can be particularly high. A false RIB slipped into a supplier file, a falsified invoice approved without verification, a contract amended in advance of signature... And tens of thousands of euros evaporate in a few clicks.
Contrary to popular belief, large groups are not the only organizations targeted. Luxembourg SMEs, which have fewer means of control, are also victims of fake document scams.
While financial losses can impact a business in the short term, legal problems leave lasting marks. Thus, when a Luxembourg company is involved, even unintentionally, in a case of document falsification, it can be held responsible.
The consequences may involve audits, administrative sanctions, but also fines.
Fraudulent documents don't just falsify a transaction. They can undermine a relationship of trust that has been built over several years. In a business environment like that of Luxembourg, where networks are often close, the discovery of document fraud can undermine strategic commercial relationships.
Even if the company is itself a victim, the image it conveys says a lot about its rigor and its internal processes.
Luxembourg companies that have already been victims of document fraud have noticed it: a suspicious document and the whole machine jams up. When fraud occurs in Luxembourg, several disruptions can occur. A blocked file, an audit that goes on for a long time, a contract put on hold...
The result: deadlines are exploding, projects are falling behind schedule, and employees are wasting precious time untangling what could have been avoided.
In Luxembourg, certain sectors are particularly exposed to document fraud, in particular because of the sensitive nature of the documents they handle on a daily basis:
To protect themselves from the risks of fraud, companies operating in these sectors must be more vigilant.
Luxembourg companies can no longer afford to let document fraud threaten their activities. This is why we have developed Finovox, a technology that makes it possible to automate the detection of document fraud in a professional environment. With this all-in-one tool, you can strengthen the performance of your existing anti-fraud system, but also facilitate the work of your compliance employees.
How does that work?
Finovox is a defense software that is as practical as it is effective. Developed using proprietary artificial intelligence, it acts as a detector of fake administrative documents. It works on 100% of documents and in all languages.
Once integrated into your systems as SaaS or in the form of an API, Finovox locates, identifies and explains each alteration it detects.
There's no need to turn everything upside down. Just to be better equipped.
Integrate Finovox with your existing tools!
