Invoice Fraud. One of those heart-breaking moments where people's good will is exploited, huge amounts of money are stolen and we begin the difficult journey of trying to retrieve and recover. It can happen so quickly and be so unexpected.
So what is invoice fraud? Invoice fraud is when an unknown entity poses as a supplier/sub-contractor requesting payment for services. Fraudsters can easily put together a very convincing document requesting funds be sent to a new set of payment details, which are supplied with the invoice. Often it will be accompanied by a statement stating that it is not their responsibility to update payment information and if an invoice is not paid on time or paid into the right account, penalties will be enforced. This sounds very formal and official and can often panic people into making the payment without a second thought.
Below are some top tips to avoid falling victim to invoice fraud. It is important that all staff are made aware of the threat of fraud and how best to avoid falling victim:
- Always confirm any changes in bank details with your usual contact
- Use the contact details on file or from the official website, not the number and email printed on the letters
- Consider setting up a ‘Single Point of Contact’ with the companies you pay regularly
- Consider adopting dual control procedures for any change in payment information
- Communicate these messages to any staff with responsibility for making payment
Remember, if you fall victim to any kind of fraud or cyber-attack, report it. To your bank, to the police and to Action Fraud.