Lessons from the Arena TV Scandal and the Industry’s United Response

As we approach the fourth anniversary of the Arena Television asset finance fraud, it’s a moment for reflection across the asset finance industry. What was one of the most significant and far-reaching frauds in our sector’s history became a turning point, not only exposing weaknesses in systems and oversight but also sparking meaningful collaboration and reform.

A defining moment for asset finance

When the Arena TV scandal broke in late 2021, the sheer scale of the deception stunned the industry. More than 50 funders were affected, with hundreds of millions of pounds in exposure to what was ultimately revealed to be fictitious assets and falsified documentation.

For more information on exactly what happened and how details of the fraud were uncovered, this recent article from Kroll, the official administrator for Arena TV, provides an excellent overview.

In the aftermath, every funder involved had to “have the drains up”, re-examining due diligence, broker and supplier approval processes and credit underwriting practices. The uncomfortable truth was that, although most lenders already had strong policies and procedures on paper, complacency, commercial pressures and pandemic disruption meant those standards were not consistently applied.

The result was a collective wake-up call. The Arena TV fraud highlighted that policies alone are not enough; it’s consistent, disciplined application of those policies that protects funders and customers alike.

Collaboration and transparency: The launch of Acquis Lumia

Out of that painful period came something positive: a genuine industry-wide collaboration to tackle systemic risk. Congratulations are due to Acquis Data Services and all those involved in the creation of Acquis Lumia and, specifically, the Exposure Database, which is now supported by 42 funders.

This shared platform represents a vital new layer of protection for the industry, allowing funders to see overlapping exposures, identify anomalies and make better-informed credit and risk decisions. It’s proof that when the industry works together, it can drive real change.

The fundamentals still matter

However, while tools like Acquis Lumia strengthen our collective defences, they can’t replace the fundamentals. The lessons from Arena TV remain crystal clear:

• Strict adherence to internal policies and procedures is non-negotiable
• Robust broker and supplier due diligence must remain a cornerstone of any credit process
• Independent, physical and digital asset inspections, both pre-payout and in-life, are essential to ensure that funded assets genuinely exist and continue to perform as expected

Fraud prevention is about both technology and discipline. The data tells a story, but it’s what you do with that information, and how you verify it in the real world, that ultimately makes the difference.

VAS: Supporting funders in the fight against fraud

At Vehicle & Asset Solutions (VAS), we’re proud to support the asset finance industry with services designed to uphold the highest standards of verification and control.

Our nationwide team of over 145 auditors provides comprehensive physical asset inspections, ensuring that assets have their existence, location and condition verified, both before payout and throughout the asset’s life cycle.

Meanwhile, our SMART Risk Platform delivers a digital-first approach to risk management and asset assurance. Combining inspection data, digital tracking and intelligent reporting, SMART enables funders to maintain visibility and compliance at scale, supporting a proactive approach to fraud detection and portfolio integrity.

To complement our digital risk platform, VAS provides physical audits to ensure that our funding clients enjoy full flexibility and maximum coverage. Although digital technology for asset finance enhances efficiency and can save time and costs, in our experience it’s the gut feel and added value of in-person audit services that facilitate that second and third question and dig that much deeper for further peace of mind. Digital and physical audit combined together offers the most powerful solution to risk management and asset assurance.

VAS also offers a Broker Oversight Service, easily facilitating that all-important review process for due diligence across funder credit processes. This recently launched service is a new sector-leading approach to broker oversight, delivered through an AI-powered digital platform that provides a clear, efficient and repeatable way to understand the compliance health of a funder’s network.

Together, our physical and digital solutions give funders the confidence that every asset is where it should be - and every deal is built on solid ground.

Continuing the fight against asset finance fraud

The Arena TV scandal was a watershed moment, one that forced our industry to confront uncomfortable truths. Four years on, there’s been genuine progress: stronger collaboration, better transparency and renewed focus on robust underwriting practices.

But the work isn’t over. Fraud will continue to evolve, and so must our vigilance. At VAS, we remain committed to helping the industry stay one step ahead, providing the insight, expertise and verification tools that keep funders protected and confident in lending decisions.

If you’d like to know more about how VAS’s asset inspection services and its SMART Risk Platform can support your fraud prevention strategy, contact our team today.