KVK: 55% of entrepreneurs do not check KVK numbers, risking fraud

One in five business owners say they check new business contacts only rarely, if at all. Even though checking a KVK number takes just a few minutes to confirm whether a company exists and who you are doing business with.

A simple check, a major impact

“Checking whether a business actually exists is quick and easy, but is still too often overlooked,” says Marije Hovestad, managing director of Data Provision at KVK. “Anyone who fails to carry out a KVK check is taking an unnecessary risk and may end up doing business with a business that simply does not exist.”

Lack of awareness increases risks

The survey also shows that many entrepreneurs are insufficiently aware of the importance of correct registration in the Business Register. For example, 43% are unaware that insurers consult this information when dealing with claims for damages. Furthermore, nearly a third of entrepreneurs are unaware that this information is legally binding, even when the actual situation is different.

According to Hovestad, the KVK number serves as a unique identifier for businesses. “Banks, municipalities, and insurers rely on this information. If it is incorrect, this can lead to delays or problems with financing, licences, or insurance claims.”

Vulnerable not only in business, but also in private life

Business owners are also missing out on opportunities to mitigate risks in their private lives. Over 60% have never consulted the Business Register when making private purchases, even though fraud occurs relatively frequently in this context, for example via fake online shops. One in 6 entrepreneurs says they have occasionally found, after making a private purchase, that a business did not actually exist.

“It is precisely with unknown online shops or suppliers that an initial check is essential,” says Hovestad. “Anyone who fails to check whether a business actually exists is leaving themselves vulnerable.”

Advice: make checking standard practice and keep details up to date

KVK advises business owners to carry out a KVK check as standard for every new business relationship. When doing so, check the basic details, such as the KVK number, the trading name, the address, and the SBI code (business activity). Also check whether your business contact is authorised to sign on behalf of the company.

It is also important to keep your own company details up to date in the Business Register. Changes, such as an address or business activities, must by law be reported within a week.

A check that takes just a few minutes can prevent many problems and financial loss.