How to Spot a Fake Invoice and Avoid Getting Scammed

Invoice fraud is a kind of phishing attack that can take many forms, but most commonly boils down to a scammer, feigning legitimacy, trying to separate you or your business from your money by claiming you owe a debt. Though it may look official, you need to be prepared to spot a fake invoice when you see one.

In this article, we’ll be showing you how to spot the fake invoice scam and protect yourself and your business from harm.

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How Does the Fake Invoice Scam Work?

A fake invoice can take many forms, but the anatomy of the scam is roughly the same. A scammer impersonates a legitimate company and sends an invoice to the victim, through a mimicked email or the like. The invoice appears legitimate and provides banking details for the victim to transfer funds in payment.

Once the funds have been transferred, the victim is none the wiser until the real company calls and asks about the outstanding funds that you believed you’d already paid.

In some cases of invoice fraud, the victim’s personal and banking details are the target, and they will be made to call a number or visit a site that will steal that key information, which can be much more valuable than the outstanding amount.

These scammers will impersonate companies and service providers with varying degrees of accuracy. They can spoof entire websites, use company branding, and mimic URLs and email addresses so closely that a passing glance may not give it away. This scam is especially effective for businesses, where a wave of invoices isn’t scrutinized as closely as an individual’s bills might be. That said, the scam can affect everyone.

Spotting the Scam and Staying Safe

The fake invoice scam relies on perceived legitimacy to deceive its victims. From suppliers to subscription services, a fake invoice will seek to deceive through aggressive mimicry. Therein lies your primary means of detecting it. Here are our top tips for spotting these:

Am I due an invoice? – Do you actually use the subscription service that you’ve just received an email from, or did you actually order something from that supplier? It’s a simple question, but invaluable in detecting a fake invoice. Take a few moments to figure out if you need to pay before actually doing so.
Enough time to pay – Nearly all scams rely on time pressure to discourage the victim from having time to think things over, and fake invoices are no exception. If you receive a bill that’s demanding payment in the next few days (or hours), and threatening action if you don’t, it may be a scam.
Discrepancies – Look closely at the invoice. Apart from spelling mistakes, fonts, and branding, there are other giveaways, including:
- The lack of a personal or physical address
- Your name or company is not mentioned in the title
- Specific products or services that you haven’t used or that aren’t sold by the company
- Errors in pricing
- Invoice numbers differ from those received earlier
Links to somewhere else – If the invoice includes a link to pay, which takes you to a site whose URL is different from the legitimate one, you should be cautious immediately. Some of these links are based in Taiwan and South Korea.
Check with the supplier directly – If unsure about the validity of the invoice, call up the supplier and enquire directly. In the case of bigger organizations or services, check via the app or contact their customer care division.
Déjà vu – If you’ve received a similar invoice in the past, with a similar amount and billing number, and possibly similar misspellings, etc., then you’re being duped. Scammers often send out broad emails with invoices, changing little and hoping to snag someone.