Suppose you receive an invoice and pay it, by transferring the amount as usual to the stated account number. A few weeks later you receive a reminder. Strange, wright? You have probably become a victim of invoice fraud and paid the amount directly to scammers.
What is invoice fraud?
The name speaks for itself: in invoice fraud, fraudsters falsify or alter an invoice. They intercept a genuine invoice, replace the recipient’s bank details with their own, and send the altered invoice. A business can receive a fake invoice, or send an invoice itself, which is subsequently falsified.
How does invoice fraud work?
First, fraudsters intercept an invoice. This can happen in several ways:
- From the postal system: fraudsters take the invoices from the Belgian postal service’s red post boxes or sorting centres.
- They steal invoices from private individuals’ or businesses’ letterboxes
- They hack into a supplier’s IT system, intercept invoicing emails or change the account number. So be vigilant about invoices you receive electronically as well.
The fraudsters then change the recipient’s account number.
- They often scan in the original invoice and alter the supplier’s or vendor’s details (account number and sometimes the telephone number) with special software.
- Alternatively, they include a letter with the invoice stating that the account number has changed. Sometimes they put a sticker on the envelope or the invoice itself saying ‘Attention: change in account number’.
They send the altered invoice afterwards.
Which invoices are forged?
Scammers try to intercept all types of invoices: these are mainly one-off payments of a large amount.
Tips to prevent invoice fraud
- Compare the account number on the invoice with the account number on the vendor’s or supplier’s order form or official website.
- Be extra vigilant if an invoice mentions a new account number or if there is a sticker ‘Attention: change in account number’ on the envelope or invoice, even if it is the first invoice you receive from a vendor or supplier. Take a moment to verify the account number before paying.
- If you’re in any doubt, call the business using the number already in your database, not the one listed on the invoice (which might also be fake).
- Keep a record of your suppliers’ details and bank account numbers, even if you pay electronically. When you receive a new invoice, you can easily check whether the account number matches your records.
- If you receive an invoice that looks suspicious, do not pay it until you have properly verified that you are a customer of the business or have ordered something from them.
- If you receive the invoice by email, check that the email address is correct.
I’ve paid a false invoice anyhow. Now what?
- Contact your business’s bank as soon as possible to report the fraud. Your bank will ask the beneficiary’s bank to refund the money. This bank will also try to block the transfer or account so that the fraudsters can no longer withdraw money.
- File a complaint with the police.
- Report it at https://meldpunt.belgie.be/meldpunt/en/welcome (option ‘fraud and scams’ > ‘other problem’). At the end of your report, you’ll be immediately advised what steps you can still take and who can assist you in that regard.
REACT QUICKLY
If you detect fraud after a transfer has been made, notify your bank immediately. A list of all contact points can be found at Card Stop. If you notify the bank quickly, there is a greater chance of recovering the stolen money.