We explored all of this in our latest Asset Finance Series webinar, where Brent Starrenburg, Head of Commercial and Asset Finance at Connective, was joined by Daniel Oh, Connective’s Group Legal Counsel, alongside Craig Chapman, Head of Risk and Asset Finance at Pepper Money, and Geoffrey Egan, General Manager of Distribution at Flexi Commercial. Here is what every asset finance broker should know.
Loan fraud has dominated the headlines throughout 2026, sharpening the focus of regulators including ASIC, AUSTRAC and APRA. Most of the attention has centred on home lending, but asset finance carries its own risks: faster transactions, smaller loan amounts, and a perception that less scrutiny is required. Add technology that makes fraudulent documents easier to produce, and vigilance matters more than ever. The point isn’t to turn you into a forensic investigator who is suspicious of every deal. It’s to help you recognise the warning signs and know when to ask more questions.
Not all fraud is created equal, and knowing the kind you’re dealing with makes the warning signs much easier to spot. At one end is what Daniel calls “dumb fraud”: the liar loans, falsified payslips and doctored documents that are often riddled with obvious mistakes. At the other is “smart fraud”: the sophisticated, syndicated activity linked to organised crime. It also helps to know where the risk sits, whether that’s the borrower’s income, the asset or supplier, or the transaction itself. Naming it is the first step to catching it.
It pays to be clear-eyed about who you’re up against. For the people committing fraud, this is a full-time job. As Geoffrey Egan from Flexi Commercial puts it, “They’re not doing this in their spare time. They’re very patient. They study the market.” They pick their moments, too, going after the weakest link and the busiest times of year, and come June the pattern sharpens around tertiary assets, something Craig Chapman from Pepper Money sees at Pepper’s end.
AI is a double-edged sword. It’s making it easier for fraudsters to generate convincing documents, but it’s also helping lenders screen far more applications than before. Technology is only part of the story, though. Heightened awareness, from boards to regulators to bodies like AFCA, has done just as much to lift standards, and the tech has real limits. As Geoffrey sees it, “Don’t overestimate how good the AI is at detecting fraud. It’s a tool, but it’s not a panacea.” The old-school checks still catch plenty: spelling errors, grammatical slips and changes in font. Even with sophisticated tools in place, Craig notes that “20 to 30% of payslips are still picked up by our credit analysts.” Don’t underestimate your own human eye.
As a broker, you’re the first line of defence, and that’s a responsibility you can’t hand back to the lender. Lenders expect you to genuinely review what comes across your desk, not just collect it and pass it on. As Geoffrey puts it, “They’re acting there for our interests, and we expect them to review the documents themselves.” The advice on instinct is hard to argue with: “Ignore your gut feel at your own peril.” If something doesn’t sit right, say so, because a lender would far rather you raised a concern early than stayed silent. Daniel puts it plainly: “You’re not a glorified postbox. You should look and review these things.” The stakes are simple: it’s better to avoid a bad deal than to get embroiled in one and spend months working your way out.
“Know your customer” is a familiar mantra, but it’s just as important to know your supplier and your referral sources. Supplier fraud is one of the fastest-growing problems lenders see: assets that don’t exist, vendors who aren’t who they claim to be, and payout letters that get intercepted and altered. The good news is that many of the best checks are simple and free. As Daniel says, “You don’t need all these fancy tools. There’s this thing called the internet.” Pick up the phone, drive past the premises, do an ABN look-up, check Google Maps and LinkedIn, and confirm you’re paying the same bank account you always have.
It all comes back to stepping away from the deal and asking whether it makes sense. “If you’ve got a small used-car dealership on Parramatta Road selling prime movers, you’ve got to ask yourself, is this a legitimate transaction?” Geoffrey asks. The same goes for leads that look too good to be true. “If someone knocks on your door and says, ‘I’ve got a truckload of deals here,’ it probably is too good to be true,” he warns. “Most deals are won through blood, sweat and tears.” This is where deep asset finance experience earns its keep: a seasoned broker spots things a generalist wouldn’t, which makes knowing your craft one of your best defences.
Learn the red flags
Much of what gives fraudsters away is surprisingly visible once you know what to look for. Keep these red flags front of mind:
Some of the fastest-moving threats are cyber-related. In one recent case, a dealer was hacked and the bank account details on a payout letter were quietly changed. Because the broker didn't independently verify the details, funds were briefly transferred to the wrong account before they were recovered. These man-in-the-middle attacks come down to your weakest link, so verify bank account details directly, train your staff, and take the cyber checks your lenders ask for seriously. Not sure where to start? The Cyber Wardens program is a free, practical first step.
Even careful brokers can get caught up in something. If it happens to you, the most important thing is to cooperate fully and be transparent. As Daniel advises, “Document everything, take notes of everything, save all your emails.” It genuinely changes the outcome: one broker hoodwinked on a tertiary-asset deal worked so openly with the lender that the money was fully recovered. A lender can’t always share everything, so a little patience helps. And you’re not on your own. Connective’s Assurance team is there for exactly these moments, not to slap you on the wrist, but to help.
Fraud may never disappear entirely, but the habits that protect your business are surprisingly simple. As Craig puts it, “The more things change, the more they stay the same. Know your customer, know your supplier, go with your gut, step back from the deal and ask, does it make sense?” It’s a collective effort, and vigilance has to be part of your culture, not a box you tick when things get busy. Or, in Daniel’s words: be curious, be suspicious, and ask whether chasing one questionable deal is really worth the risk to everything you’ve built.
The steps in this article will help reduce your risk, but they're only one part of how we support our members. Throughout the year, you have access to ongoing education, experienced specialists to consult when something doesn't feel right, and a dedicated team ready to step in the moment a potential fraud issue arises. Protecting your business isn't a one-off conversation. It's something we help our members do every day.
If you'd like that kind of support behind you as you grow your asset finance business, you can, you can learn more about our Asset Finance program here.
