Businesses often work hard to protect themselves from traditional types of crime but an increasing number are falling victim to ever-more sophisticated scams. One growing type is invoice scams.
According to UK Finance, during the first half of 2021, businesses saw £59.2 million lost to these frauds, an increase of 35 per cent.
How invoice scams work
The way the scams work can make them hard to spot. Normally a criminal will pose as a legitimate supplier, claiming that their bank account details have changed. They can do this by intercepting emails or compromising a supplier’s email account.
Businesses who pay large sums to their suppliers are most at risk. Yet a seemingly innocent email from a ‘supplier’ could lead you to transferring tens of thousands of pounds to a criminal’s bank account. The average loss to business victims is a whopping £20,750.
So how do you prevent this from happening to you?
How to protect yourself
Finance UK has four tips for protecting yourself from invoice scams. To summarise, they are:
- Always phone a supplier on their official number, or speak to them in person, to confirm any bank account changes are genuine.
- Do not respond to emails asking you to update account details – the emails could be altered to look genuine or could be from a compromised account.
- If you make a payment to an account for the first time, transfer a small sum first. Then check with the company by phone to confirm it has reached their account.
- Contact your bank immediately if you believe you have been a victim of an invoice scam.
Above all, always make sure your staff are trained to be aware of scams like these. If you make it company policy never to update a supplier’s bank details without official phone confirmation, you’ll be making an important step to protect yourself.
Oh, and before I sign off, did you know that there’s also a thing called CEO Fraud these days? This happens when criminals use email to impersonate a CEO, sending a message to the finance team asking for a payment to be made urgently to a new account. So always, always check any unusual payment requests. A simple phone call could save you a small fortune and a whole lot of hassle!
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About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.