Oct 05, 2023
Businesses are targeted by scammers who send fake invoices for nonexistent services or products, hoping you’ll pay. Each year, millions of dollars are lost by organizations of all sizes.
According to the Better Business Bureau’s Scam Tracker, business owners have reported fake invoices for everything from office supplies to domain hosting services. To avoid falling for counterfeit invoices through regular mail or email, follow these steps:
- Verifying Billing Details – Ensure you understand how your legitimate billing processes work, as scammers may attempt to imitate companies you do business with. Find out how and when invoices will be delivered, how payments are made and what happens if payments are late.
- Check Payment Instructions – Scammers may include payment instructions that differ from those generally used by vendors. Before sending payment, verify the vendor’s payment instructions.
- Use Secure Payment Method – Avoid unsecured payment methods such as wire transfers or prepaid debit cards. Instead, use a secure payment method like credit cards or payment services that offer buyer protection.
- Train Your Team – Educate your employees on identifying and reporting suspicious invoices. Ensure that they verify the information and double-check instructions before sending payment.
- Create Internal Procedures – Consider requiring two people to approve payments or inspect incoming invoices. To protect your business, ensure your employees verify that orders and deliveries were made before paying invoices.
Make sure your team feels comfortable asking questions and voicing concerns about invoices.