Are you protected against invoice scams?
Can your business afford to lose $50,000? Because that's what happened to a small business recently when hacker took control of the computer of the person responsible for invoicing while they were on leave. The hacker used information from their computer to re-issue unpaid invoices with different account details. By the time anyone picked up on the changes, it was too late, and the money was gone.
The last few years have seen a dramatic increase in the number of invoice fraud scams like this targeting Small to Medium Enterprises (SMEs) across Australia.
Invoice Fraud Scams are scams which use fake invoices, that appear legitimate and often use legitimate-looking email address, to help part people from their hard-earned money. And Invoice fraud scams are becoming both more common and more sophisticated. In 2018, the ACCC estimates businesses lost close to $5 million from invoice fraud scams, a significant increase from the estimated loss of $2.8 million in 2017.
How do they work:
- scammers hack into your systems, using information obtained to ask for a redirected payment;
- they pose as an existing suppler, submit a fake invoice with different bank details;
- scammers copy or modify letterheads, names and logos to make them look real, or set up a professional-looking but fake website.
- Scammers gain access to your supplier's email account and intercept emails without either of you realising?
How to protect your business:
- Be alert to the fact that scams exist and are very sophisticated
- Don't open suspicious emails or texts
- Install strong firewalls and antivirus software
- Have strong internal accounts processes to reduce the risk of invoice fraud.
Strong internal accounts procedures provide the checks and balances that make it harder for scams to be successful. Aspen Corporate has experience with setting up internal processes which have been proven in identifying and stopping potential scams.
If you would like assistance with reviewing, or setting up tested and proven internal processes, speak to your Aspen Corporate Advisor today.