UK businesses are leaving themselves dangerously exposed to fraud, unpaid invoices and financial loss by relying on outdated due diligence practices, according to new research from digital verification platform Umazi.
Its report, Broken ID, Broken Growth: The UK’s Verification Chokehold, reveals that nearly 30% of businesses admit they do not request documentation when engaging with a company that has a ‘recognised industry name.’ Even more concerning, 29% knowingly accept the risk of working with entirely unverified businesses.
Despite rising threats such as corporate identity theft, data breaches and fraud, more than 20% of businesses perform no due diligence at all – citing a lack of tools or knowledge.
“Not every business mistake can be undone,” said Cindy van Niekerk, CEO and Founder of Umazi. “A fraudulent supplier, a fake corporate identity, a data breach that spirals out of control – and suddenly a business that was stable is gone. This is entirely preventable. The tools exist. Trust must be earned through verification, not assumed through reputation.”
The report also highlights that 63% of businesses still feel comfortable emailing sensitive information, with 73% trusting recipients to store it securely. Encouragingly, 88% of respondents said a digital business identity or ‘trust stamp’ would significantly improve due diligence.
