The False Invoice
A business is approached by someone claiming to represent a supplier, service provider or creditor, who requests that the bank details for payment (i.e. the beneficiary details of the bank account) of future invoices be changed. The new account proposed is the fraudster’s account.
How to avoid this type of scam?
As a company
- Ensure that employees are informed and aware of this type of fraud and how to avoid it.
- Put in place a procedure to check the legitimacy of payment requests.
- Instruct staff responsible for paying invoices to always check them for irregularities.
- Review information published on your company website, particularly contracts and suppliers.
- Urge your staff to limit what they share about the company and the workplace on their personal social media accounts.
- Always contact the police in the event of attempted fraud, even if you have not been the victim of the scam.
As an employee
- Check all requests claiming to be from your creditors, especially if they ask you to change their bank details for future invoices.
- Do not use the contact details on the letter/email requesting the change or verification, but rather those on the previous correspondence.
- Set up single points of contact with companies to which you make regular payments.
- For payments over a certain threshold, set up a dedicated system to confirm the correct bank account and recipient (e.g. a meeting with the company).
- When an invoice is paid, send an email to inform the recipient. Include the name of the beneficiary bank and the last four digits of the account to ensure security.
- Limit the information you share about your employer on social media.
- Report attempted fraud to your management or the relevant department.