Invoice Fraud Prevention

Understanding Invoice Fraud

New Form of Crime: Invoice fraud poses a data protection risk and is increasingly prevalent.

Methods: Fraudsters send fake invoices or manipulate existing business relationships to redirect payments.

Risk Factors

Universal Threat: All businesses, regardless of size, are susceptible to invoice fraud.

Email Risks: Email addresses can be altered, leading to unintentional data transfers to fraudsters.

Preventive Measures

• Vigilance: Employees handling invoices should meticulously scrutinize for irregularities.
• Verification: Changes to supplier financial details must be verified through established channels.
• Payment Confirmation: Notify suppliers of payment details to confirm transactions.
• Bank Statement Review: Regularly monitor bank statements for suspicious activity and report promptly.
• Validation: When in doubt, verify requests using official contact details to confirm authenticity.
• Online Presence: Assess the necessity of publicly available supplier information to reduce exposure.

Additional Resources

For further information and guidance on preventing invoice fraud, refer to HSBC's resources available here.