Factoring is a financing service in which a business sells its accounts receivable to a third party, usually at a discount, so it can turn unpaid invoices into faster cash flow. The factoring company then collects payment from the customers who owe the invoices. This model is common in industries that need steady liquidity and depend on many commercial contracts and customer records.
In cyber security, factoring firms are attractive targets because they store financial statements, receivables, contracts, identity documents, and client correspondence. That data can be used for fraud, impersonation, or extortion if stolen. Ransomware groups often exploit this risk by threatening to leak sensitive files, knowing that exposure of receivables and customer data can create legal, financial, and reputational pressure. Defenses should focus on protecting document repositories, enforcing multi-factor authentication, limiting access to payment systems, and monitoring for unusual data transfers.