Fake Invoice Scam Manufacturing Suppliers What To Do

Summary

This guide helps you troubleshoot and resolve: Fake Invoice Scam Manufacturing Suppliers What To Do. Follow the steps below to fix the issue.

Common Causes

Fake invoice scams are increasingly targeting Australian manufacturing and workshop businesses. Attackers compromise legitimate supplier email accounts or impersonate trusted vendors using similar-looking domains, then send fraudulent invoices with updated bank account details. Staff on the shop floor or in administration may process these payments without realising the request is unauthorised. This article explains how to identify suspicious payment requests, verify supplier bank details through trusted channels, and establish approval workflows that protect your business from financial loss.

Identifying Suspicious Invoices

Red Flags to Watch For

• Unexpected changes to bank account details or BSB numbers
• Urgent payment demands with threats of service interruption
• Email addresses that differ slightly from known supplier contacts
• Invoices sent from free email providers (e.g., @gmail.com, @outlook.com)
• Poor spelling, grammar, or formatting inconsistent with the supplier
• Requests to pay to a new account "due to an audit" or "system upgrade"

Check the Sender Domain

Attackers often use domains that closely resemble legitimate suppliers. For example, supplier-au.com instead of supplier.com.au, or supplierr.com.au with an extra letter. Hover over the sender address in your email client to reveal the full domain before replying or clicking any links.

Verifying Bank Details

Use Trusted Contact Information

1. Do not use phone numbers, email addresses, or links provided in the suspicious invoice email.
2. Open your existing contact list, previous legitimate invoices, or the supplier's official website to find their verified phone number.
3. Call the supplier using the trusted number and ask to speak with their accounts receivable department.
4. Confirm the BSB and account number on the invoice matches their records.
5. Ask the supplier to confirm the invoice number and amount verbally.

Never verify bank details by replying to the suspicious email. If a supplier's email account has been compromised, the attacker will intercept your reply and confirm the fraudulent details.

Establish a Verification Workflow

1. Require two staff members to approve any new or changed bank account details for suppliers.
2. Implement a standing rule that all bank detail changes must be verified by phone using a previously known number.
3. Keep a register of approved supplier bank details and only update it after phone verification.
4. Train all staff who process payments, including those on the shop floor, to recognise and escalate suspicious invoices.

If You Suspect a Fake Invoice

1. Do not make the payment.
2. Do not reply to the email or open any attachments.
3. Forward the suspicious email to your internal IT contact or managed service provider for analysis.
4. Report the incident to ReportCyber via the Australian Cyber Security Centre website.
5. If you have already made a payment, contact your bank immediately to request a recall of funds.

Act quickly if funds have been transferred. The sooner you contact your bank, the greater the chance of recovering the money.

Preventing Future Incidents

• Enable multi-factor authentication on all business email accounts.
• Restrict the ability to add or edit supplier bank details to authorised personnel only.
• Review supplier master data regularly for unauthorised changes.
• Conduct regular cybersecurity awareness training for all staff, including administrative and warehouse teams.

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