Business Fraud
Fake Invoice Scams
Fraudsters send businesses fake invoices for products or services that were never ordered or rendered, hoping they get paid by an unsuspecting employee.
How It Works
- A company's accounts payable department receives an invoice via email or mail.
- The invoice is for a common business expense, like "office supplies," "directory listing," or "IT services."
- The invoice looks professional and may use the name of a real but unrelated company, or a name that is very similar to a real vendor.
- The scam relies on the busyness of the department, hoping someone will process the payment without verifying the purchase.
Red Flags
- Invoices for goods or services you do not remember ordering.
- Pressure to pay quickly with threats of late fees or legal action.
- Slight changes in payment details (e.g., a different bank account) from a known vendor.
- The invoice lacks specific details, like a purchase order number or contact person.
Prevention Tips
- Implement a clear process for verifying all invoices against purchase orders or departmental approvals.
- Scrutinize all invoices for changes in vendor details, especially payment information.
- Train employees to be cautious of urgent payment demands.
- If in doubt, call the vendor using a phone number from a previous, legitimate invoice to confirm the details.
Example Scenario
"An office manager receives an invoice for $499.99 for an "Annual Online Business Directory Listing" from a company they've never heard of, with a "Past Due" stamp on it."