Invoice fraud
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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.