Fake Invoice Scams: How Australian Small Businesses Can Spot Payment Fraud

Summary

This guide helps you troubleshoot and resolve: Fake Invoice Scams: How Australian Small Businesses Can Spot Payment Fraud. Follow the steps below to fix the issue.

Common Causes

Fake invoice scams target Australian small businesses by sending fraudulent payment requests that appear to come from legitimate suppliers or trusted contacts. These scams often rely on urgency, familiar branding, or subtle changes to bank account details to trick staff into transferring money to criminals. Learning how to spot the warning signs and verify payment requests is essential for protecting your business finances.

Quick Fix Steps

1. Do not process any payment until the invoice has been independently verified.
2. Check the sender's email address carefully for misspellings or unusual domains.
3. Contact the supplier using a phone number from your existing records, not from the invoice email.
4. Confirm bank account details verbally before transferring funds.
5. Report suspicious invoices to your IT support provider and your bank immediately.

Detailed Instructions

Identify Common Warning Signs

• The email arrives from a public domain (such as @gmail.com or @outlook.com) instead of the supplier's official business domain.
• The sender's email address is very similar to a known contact but contains a small typo or extra character.
• Urgent language demanding immediate payment to avoid service interruption or late fees.
• New or changed bank account details compared to previous invoices from the same supplier.
• Poor grammar, spelling errors, or inconsistent formatting compared to legitimate invoices.
• Attachments in unexpected formats, such as .exe, .zip, or .scr files claiming to be invoices.
• Requests to pay via cryptocurrency, gift cards, or unfamiliar payment platforms.

Verify a Suspicious Invoice

1. Open your email client and locate the suspicious invoice message.
2. Hover your mouse over the sender's name to reveal the full email address without clicking any links.
3. Compare the email address against previous correspondence from the same supplier in your sent or inbox folders.
4. Call the supplier using a phone number from your business records, their official website, or a previous invoice you know is genuine.
5. Ask the supplier to confirm the invoice number, amount, BSB, and account details over the phone.
6. Verify the account name matches the supplier's registered business name.
7. If the details do not match, do not reply to the suspicious email. Delete the message and block the sender.

Update Payment Processes

1. Require two staff members to approve any new supplier or changes to existing bank account details.
2. Call suppliers to verify bank account changes before updating your accounting software.
3. Use Purchase Order numbers and match them against invoices before payment.
4. Limit the number of staff authorised to make business payments.
5. Review supplier bank details regularly in your accounting platform.

If you use accounting software such as Xero or MYOB, enable two-factor authentication on your account to prevent unauthorised access to your financial records.

Never click links or open attachments in an invoice email unless you have independently verified the sender. Malicious attachments can install ransomware or steal login credentials from your computer.

Troubleshooting

You Already Paid a Fake Invoice

1. Contact your bank immediately and request a stop payment or recall of the funds.
2. Report the incident to ReportCyber at cyber.gov.au.
3. Change passwords for any email or accounting accounts that may have been compromised.
4. Scan your computers with updated anti-virus software to check for malware.
5. Open a Ticket with 220 Internet Services so we can help secure your systems and review your email security.

Your Email Account Was Used to Send Fake Invoices

1. Change your email password immediately using a strong, unique passphrase.
2. Enable multi-factor authentication on your email account.
3. Check your email Sent Items and Deleted Items folders for unauthorised messages.
4. Review your email Rules and Forwarding settings for any rules you did not create.
5. Notify your clients and suppliers that your email was compromised and they should ignore suspicious invoices.
6. Open a Ticket for assistance securing your mailbox and investigating the breach.

Still Having Issues?