Essential tips to spot and avoid invoice scams

Invoice scams see criminals hacking into the business’ email system or spoofing their contact details and impersonating the business a person has recently dealt with. Scammers then send fake invoices with changed payment details.

Matthew Hannan, Head of Fraud Management at HSBC Australia says these scams are often difficult to spot and can lead to significant financial losses.

“Banks have many levels of customer protection, but criminals are always looking for ways to trick people. Before moving any money, regardless of the amount, build in your own extra steps to protect yourself.

“Always review any request for payment carefully, regardless of who is asking. To protect against invoice scams always verify invoices by calling the supplier directly using a trusted phone number. Warning signs for invoice scams can also include unusual language or formatting errors or the request for payment coming via a different email address. They may also tell you that the bank details for your payment have changed and give you the new details to send your payments to.

“We understand people are busier than ever but by taking these precautions, you can significantly reduce the risk of falling victim to invoice scams and protect your financial future.”

To protect from invoice scams, HSBC recommends the following:

Verify All Invoices

Scammers often intercept legitimate invoices and alter the payment details. Before paying any invoice – particularly if that includes new or updated bank account information - always verify the change directly with your supplier using trusted contact details. Never rely solely on email communication for verification.

Watch for Unusual Language or Formatting

Scammers make these invoices look real by copying business logos and ABNs, making the scams harder to spot. However, fraudsters often make subtle mistakes so be on alert for invoices that contain spelling or grammatical errors, odd language, or inconsistent branding.

Train Your Team to Recognise Scams

Fraud prevention starts with education and invoice scams can also affect small businesses. Regularly train your employees to recognise the signs of phishing and invoice fraud. Ensure they know to verify unusual requests and encourage a culture of vigilance.

Be Cautious of Unexpected or Unfamiliar Invoices

If you receive an invoice from a company or individual you don’t recognise, or for services or goods you didn’t order, treat it with caution. Scammers often send fake invoices in the hopes that recipients will pay without scrutinising the details.

Move swiftly if something feels wrong

As soon as you recognise something might not be right it is important to act quickly. If you have shared financial information or transferred money, contact your bank immediately.