Invoice Fraud Emails

Scam of the Week #2: Invoice Fraud Emails

Small businesses rely on vendor relationships to keep operations running, and cybercriminals are exploiting this by sending fake invoices designed to trick employees into making fraudulent payments.

How the Scam Works Scammers impersonate vendors by using email spoofing techniques, sending invoices that appear to be from trusted suppliers. They may alter just one letter in an email address or use convincing branding and language. The email will urge immediate payment, often directing funds to a fraudulent bank account. In some cases, the scammer may send follow-up emails or phone calls to apply pressure and make the request seem legitimate.

How to Protect Your Business

• Always verify payment requests directly with vendors using a known phone number, not the contact details provided in the email.

• Implement a two-step verification process for approving financial transactions, requiring multiple levels of approval before releasing funds.

• Use email filtering to detect and block suspicious invoices. Advanced email security solutions can help identify phishing attempts and prevent them from reaching inboxes.

• Monitor financial accounts regularly for unusual transactions, and immediately report any discrepancies to your bank or financial institution.

• Educate employees on how to identify red flags in invoice emails, such as urgent language, unfamiliar payment details, or unexpected changes in vendor information.