Invoice fraud and email scams are on the rise, targeting businesses of all sizes. Criminals are becoming increasingly sophisticated, impersonating suppliers, clients, or even colleagues to trick employees into making payments or sharing sensitive information. The impact can be devastating, from financial loss to reputational damage.
At Dash Accounting Services, we work with businesses who often operate with tight deadlines and fast-moving projects making them prime targets for fraudsters. Here’s what you and your employees need to look out for, and how to protect your business.
What is Invoice Fraud?
Invoice fraud happens when criminals send a fake invoice that appears to come from a trusted supplier or contractor. Often, fraudsters will:
- Alter genuine invoices by changing bank details.
- Impersonate suppliers via email, requesting payment to a new account.
- Send entirely fake invoices for services never provided.
Because many businesses process large volumes of invoices quickly, these fraudulent requests can slip through unnoticed.
What is Email Fraud?
Email fraud involves criminals gaining access to or spoofing a business email account to trick employees into transferring money or revealing confidential data. Some common tactics include:
- CEO fraud: impersonating a senior leader requesting urgent payment.
- Supplier scams: posing as a regular supplier asking for updated bank details.
- Phishing: sending emails with malicious links or attachments to steal login credentials.
Red Flags to Watch Out For:
Businesses and employees should be alert to:
- Unusual payment requests, especially urgent ones or requests to new bank accounts.
- Spelling mistakes or unusual formatting in emails.
- Changes in tone or writing style that don’t match the sender’s usual communication.
- Email addresses that look similar but include extra characters or different domains.
- Invoices with altered account details or requests for payment outside normal terms.
How to Protect Your Business
- Verify before paying: Always double-check any change in supplier payment details by calling a known contact.
- Use strong email security: Enable multi-factor authentication (MFA) and train staff to spot phishing attempts.
- Have clear approval processes: Require dual authorisation for payments above a certain threshold.
- Educate employees: Run regular training sessions on fraud awareness.
- Keep software updated: Ensure your systems and security are up to date.
What to Do if You Suspect Fraud
- Stop payments immediately and contact your bank.
- Report the incident to Action Fraud (the UK’s national reporting centre for fraud and cybercrime)
- Notify affected suppliers or clients so they are aware of potential risks.
- Review your internal controls to prevent future attacks.
Final Thoughts
Invoice and email fraud are growing threats, but with the right awareness and processes, your business can significantly reduce the risks. At Dash Accounting Services, we support businesses not only with accounting and compliance, but also with financial controls that help safeguard against fraud.
If you’d like to discuss how to strengthen your business’s financial processes, get in touch with us today via our contact page
