‘Invoice fraud’ is costing UK businesses almost £100 million a year, according to the latest statistics.
The finding forms part of UK Finance’s latest study into invoice and mandate fraud, which is increasingly becoming a major threat to UK businesses.
According to UK Finance, invoice fraud typically involves criminals targeting businesses by email, posing as a regular supplier and then making a request for their bank account details to be changed. The invoice is then paid to the account controlled by the fraudster, leaving both the company and supplier out of pocket.
UK Finance said this type of fraud cost businesses across the UK some £93 million in 2018, with reports of 3,280 fraud cases costing the average business £20,750 each.
Despite the seriousness of invoice fraud, UK Finance believes that a number of firms are not fully aware of the risks involved. For example, four in 10 (43 per cent) business owners are not aware of the existence of invoice fraud.
UK Finance also warns that the risks posed by invoice fraud only increase as firms grows in size.
Commenting on the report, however, Katy Worobec, managing director of economic crime at UK Finance, warned that “invoice fraud could happen to businesses of all sizes”.
“The gangs behind this type of fraud are increasingly sophisticated and will often get hold of details that allow them to pose convincingly as regular suppliers.
“If someone contacts you asking for a supplier’s bank account details to be changed, always verify with that supplier separately on the phone or in person, using the contact details you have on file.”
Top tips to stay safe from invoice fraud:
- Be wary of every email you receive. Criminals can change emails to appear as though they have come from a genuine source.
- Employees should be vigilant about not giving away banking or invoice information and being suspicious about any unexpected approaches. If in doubt, contact the company directly.
- Always confirm any bank account details directly with the company either on the phone or in person before you make a payment or transfer any money