Invoice Fraud is on the increase
Fraudsters are targeting their victims by intercepting a genuine supplier invoice and tricking payment of future invoices to a different bank account under their control. These approaches can be made over the telephone, by letter, fax or through electronic communications. The fraud usually goes unnoticed until the supplier chases for payment, by which time the majority of the funds have been transferred out of the UK banking system.
Incidents of invoice fraud are often under-reported so it is difficult to establish the true scale of the problem. We recommend reviewing procedures and systems.
Summer has been identified as peak time for fraudsters taking advantage. More experienced staff go on holiday, leaving less experienced or temporary replacements in control who may be less likely to spot an attempted scam.
Here are our top tips to avoid becoming victims of this type of fraud:
Make sure that all staff who process supplier invoices and who have the authority to change bank details look out for irregularities
Once a supplier has been paid, it is good practice to inform them of the payment details, including the bank detail being credited, date it will be received and amount
It is extremely difficult to stay ahead of the fraudsters and if the worst happens and your business is affected, the overall cost will be damaging, particularly for smaller entities. Notify your insurer or broker as soon as you notice something isn’t right and they can help you carry out a comprehensive investigation to ensure it doesn’t happen again.
For further information contact your usual Moore partner.