Invoice Fraud
1/30/23
By:
Jophet Montelibano Jr
Invoice fraud involves a fraudster notifying your company that supplier payment details have changed and providing alternative details in order to defraud you.
What is Invoice Fraud?
Invoice fraud involves a fraudster notifying your company that supplier payment details have changed and providing alternative details in order to defraud you.
How does Invoice fraud happen?
Invoice fraudsters are often aware of the relationships between companies and their suppliers, and will know the details of when regular payments are due. The fraud may only be discovered when the legitimate supplier follows up on non-payments.
Fraudulent letters and emails sent to companies are often well-written, meaning the fraud is difficult to spot without strong operating processes and controls in place. Email addresses are also easy to spoof, or in the case of malware-infected PCs, criminals can access genuine email addresses.
How you can help to prevent invoice fraud
Always check the details of any new/amended payment instructions verbally by using details held on file, and do not solely rely on the new instruction. Fraudsters can imitate email addresses to make them appear to be from a genuine contact, including someone from your own organization.
Consider removing information such as testimonials from your own or your suppliers’ websites or social media channels, as these can help fraudsters identify your suppliers.
Fraudsters will look for opportunities to exploit any vulnerabilities in your processes. Therefore it is crucial to ensure staff is regularly educated, particularly those that are responsible for making payments.
While working remotely, ensure you and your colleagues remain vigilant and adhere to relevant checks and processes.
Look carefully at every invoice and compare it to previous ones received that you know to be genuine – particularly the bank account details, wording used and the company logo. When making a payment, ensure your invoices quote the full legal or ‘trading as’ name.
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