False Invoice Scam

How can you protect yourself?

  1. Ensure your accounts payable personnel are aware of the prevalence of these schemes and that they always match invoices to true vendors.
  2. Don’t purchase from new suppliers or pay invoices from unfamiliar vendors until you verify their existence and reliability.
  3. Verify all billing authorizations. Don’t pay invoices until checked against receiving reports.
  4. Do your due diligence. Check out the company with the Better Business Bureau or your state’s Office of the Attorney General.

Scheme Information

False Invoice Scam

Paid Invoices

Businesses are popular targets for fraud schemes. Invoice scams – bills for goods and services a business never ordered or received -- rake in billions of dollars for fraudsters every year. They succeed mainly because people don’t look too closely at the phony invoices when they receive them or because they unknowingly gave the scammer the right to charge whatever he wants.

There’s a simple solution to stopping a phony invoice scam -- issue purchase order numbers for all purchases and check all invoices against the original orders. Be wary of anything else. A couple more cautions. Just because something looks official or genuine doesn’t mean it is. Use reputable businesses; if it’s a new name, check them out. Spotting an invoice scam is going to save your company money!