How to use CPF and CNPJ registration queries to prevent fraud and defaults

The tool allows you to get to know your customers and business partners better and be more assertive in your sales.

The digitalization of the economy, which has received a strong boost from the pandemic, brings more and more business opportunities, but also warnings for companies operating in this ecosystem, as some recent data from the sector shows. Just to give you an idea, scams against bank customers grew by 165% in the first half of this year compared to the same period in 2020, according to a survey by the Brazilian Federation of Banks (Febraban), released in October.

The Fraud Attempts Indicator, compiled by Serasa Experian, also reveals that in the first half of 2021, possibly fraudulent transactions were recorded every eight seconds in Brazil, totaling 1.9 million attempts, an increase of 15.6% compared to the same period in 2020 and the highest volume ever recorded since 2011.

At first glance, the scenario seems worrying, but on the other hand, there are positive signs. According to the "Global Identity and Fraud Survey 2021", 55% of consumers said that security was the most important aspect of their online experience. Companies are also becoming increasingly careful with digital security, especially in Brazil. The same study reveals that investments in software and fraud detection methods are priorities for 66% of Brazilian companies, well above the global average of 47%.

Although most companies are aware of the right path to take, they can't let their guard down, as the country also suffers from another chronic problem: a high rate of defaulters, i.e. people who can't pay their bills or debts. The pandemic has naturally worsened the scenario and, in September this year, the number of defaulters in Brazil totaled more than 62 million people and more than 208 million debts nationwide, according to Serasa's Map of default and debt renegotiation in Brazil.

The problem affects micro, small and medium-sized enterprises in particular: five out of ten companies suffer from default by their customers, whether individuals or companies, and the situation is particularly acute in the retail sector. Redoubling your vigilance is therefore essential to prevent your company from becoming a victim of fraud and defaulting customers. It goes without saying that defaults are costly for your company and have a direct impact on your profits.

Fortunately, today there are several tools that can help your company protect itself against these types of problems. The main one is the CPF or CNPJ registration query. Here's why.

Why check your CPF and CNPJ?

First, it is important to understand that consultation is essential for you to know reliable data about your customers and partners and, consequently, to negotiate more safely and without fear of default.

The CPF and CNPJ registration query allows your company to assess your client's good relationship with the market before granting loans, financing and other credit operations.

Where to find out your CPF and CNP detailsJ?

The Receita Federal has a service that allows you to check CPFs and CNPJs. The tool is free and easy to use, but only provides basic data such as the date of registration and the registration status of the person or company you are interested in.

The consultation, for example, doesn't provide information on your financial or tax situation, but only proof of your CPF and CNPJ status. Depending on your purpose, this information alone may be useful.

Those looking for more robust data, on the other hand, have to resort to much more complete tools that provide a range of more detailed and accurate information, as well as a financial and even judicial history of the CPF and CNPJ. This is the case with 4KST Consulta, one of the solutions developed by 4KST.

How does 4KST's CPF and CNPJ registration query work?

4KST Consulta is a tool that allows you to perform CPF and CNPJ queries, as well as credit analysis of your customers, 100% online and on the spot.

The moment you know in detail your customer's financial status and any debts they may have, you have powerful information in your hands to prevent fraud and defaults and, consequently, be more assertive in your sales.

4KST Consulta is a very simple service to use. When you make a CPF query, the tool returns all the information you need to make a decision: from the person's name, status, registration status, date of birth, mother's name and up to the last five addresses, telephone numbers, emails and shares in companies, among others.

Similarly, when consulting by CNPJ, the tool informs you of the company's registration status, company name, corporate division, name and CPF of the partners, the last five addresses and telephone numbers, as well as the number of branches, the Company Registration Identification Number (Nire) issued by the Board of Trade, among other important data.

4KST Consulta also returns an indication of whether the CPF or CNPJ has any financial or judicial restrictions, the so-called restrictive flag. For example, the financial restrictive flag shows the date of the occurrence, the nature of the option, the contract number, the creditor's CNPJ, among other data. The judicial restrictive flag shows the date and type of action, lawsuit, plaintiff, district and court, among other useful information.

The platform allows single queries starting at R$1.99 or offers monthly packages starting at R$49.90 which entitle you to discounts on single queries. Are you interested in our tool for checking CPF and CNPJ? Click here and find out more about our solutions!