Construction Company Prevents $800K Fraud Through Due Diligence
A mid-size construction company identified and prevented a fraudulent vendor from entering their supply chain through comprehensive due diligence screening.
The Challenge
The company was expanding rapidly and needed to onboard new subcontractors quickly to meet project demands. Traditional background checks were taking too long and missing critical red flags. A previous incident with a fraudulent concrete supplier had cost the company significant project delays.
The Approach
VenLink implemented automated due diligence screening that cross-referenced business registrations, owner backgrounds, and financial indicators. The system flagged inconsistencies in real-time during the onboarding process, allowing procurement teams to investigate before issuing purchase orders.
Implementation Timeline
How the solution was deployed and results were achieved
by Procurement Manager
The Outcome
Within the first six months, the system identified a subcontractor with falsified credentials and connections to a previous fraud scheme. The vendor had submitted realistic documentation and passed initial reviews. VenLink's deep screening revealed the business address was a virtual office, the owner had multiple previous business failures, and key certifications were from non-existent organizations. Estimated fraud prevention: $800,000 based on the proposed contract value.
"The due diligence module caught what our manual process would have missed. That one catch paid for years of VenLink subscription."