Invoice fraud – what it is and how to avoid it

The latest figures from UK Finance show that £42.7m was lost to invoice and mandate scams in 2024. 76 per cent (£32.3m) of these invoice and mandate scam losses occurred on a non-personal or business account.

Most cases of invoice fraud could be prevented with one simple step - calling the supplier using a trusted number to verify the account details.

What is invoice fraud?

Invoice fraud is when fraudsters send an invoice, or a request to pay into a new account, claiming to be a genuine business or person you have worked with. Sometimes fraudsters are able to hack the emails of your supplier to send the invoice, so the email address is genuine but the payment details are changed to those owned by the fraudster.

Always verify new payment details

Email is not a secure way to send or receive payment details, because email accounts can be compromised. To reduce the risk of invoice fraud, always check payment details with your supplier directly (and not by replying to the email) before making a payment. Whether you are setting up a new payee or updating existing details – check every time.

This only takes a few minutes. Call your supplier using the number you already have for them, or the number published on their website, not the number in the email you are checking, as that could also have been changed by a fraudster.

This simple measure could eliminate almost all cases of invoice fraud.  

It is not just your supplier's email that can be compromised. Fraudsters can also access your own email accounts or devices to redirect any payments intended for you. We recommend following the National Cyber Security Centre's guidance to help keep you and your devices secure.

"We’re seeing invoice fraud attacks on our customers. A phone call to the usual contact at the supplier or service provider is all it takes to verify the 'new' bank details and these frauds would have been avoided. Five minutes of your time could make all the difference." - Kirsty McStay, Financial Crime Risk Manager, Triodos Bank

7 useful measures to help prevent fraud

There are several practical steps you can take to protect yourself from invoice fraud.

Use this checklist to reduce the risk. If anyone else can make payments from your account, share these measures with them so they understand the warning signs of invoice fraud too:

1. Check invoices carefully
   Anyone who has the authority to pay invoices and change bank details should check supplier names, addresses, invoice amount and bank details to ensure they’re correct.
2. Verify payment details
   Every time you set up a new payee, or if a supplier asks to update their payment details, always verify the payment details with them by calling the number on their website or a previously saved and trusted number that you have for them.
3. Follow up invoice payments
   When you pay an invoice, let the supplier know the payment has been made, confirming the amount and bank details paid into. 
4. Check bank statements carefully
   Report all suspicious debits to your bank immediately.
5. Call suppliers back
   If you receive a phone request to pay an invoice or pay into a new account, say you’ll call the supplier back. Use the number published on their website or the one you previously have saved for them so you know it’s the genuine number you’re calling. Do not call using telephone numbers provided in email chains, as these can be compromised.
6. Be careful what you post online
   Fraudsters often thoroughly research suppliers so that they can convincingly impersonate them. Be aware of information that you publish online, such as on review websites, or recommendations through social media, or supplier lists on your website.
7. Make a small test payment
   Before making a payment to a new account, transfer a small amount first and call the recipient (on the number published on their website) to check that the payment has been received OK.

If you think you may have fallen victim to invoice fraud, contact us immediately on 0330 355 0355. We're here 8am-6pm weekdays and 10am (Thurs 9am-6pm) and 12pm-4pm weekends for fraud queries. If abroad, call +44 (0)1179 739339.