Invoice fraud and billing scams: What they are and how to help protect yourself

Estimated reading time
 6 min

Key points

• Invoice fraud involves cybercriminals impersonating trusted businesses and altering payment details to redirect funds.
  
  
• Common red flags include unexpected invoices, mismatched details, and urgent payment requests designed to pressure victims.
  
  
• Prevent invoice fraud by verifying payment details, confirming senders, and maintaining strong cybersecurity practices.

Invoice fraud and billing scams are a growing risk for businesses and individuals, often leading to significant financial loss.

Scammers can alter invoices or payment requests to redirect money to a different account - sometimes without it being obvious. Taking a moment to verify payment details before you pay can help you reduce the risk of sending money to the wrong person.

What are invoice fraud and false billing scams?

Invoice fraud, false billing and payment redirection scams happen when a scammer pretends to be a business you know or trust to convince you into sending money to the wrong account.

This may involve sending an invoice with changed payment details, often from a compromised email account, or sending an email that looks like it’s from a real supplier.

Scammers may also send unexpected invoices for services you didn’t request, asking you to pay quickly to avoid disruption.

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Invoice fraud in action

This example shows how invoice fraud can play out:

A business received an invoice that appeared to come from a regular supplier. Unbeknownst to the business, the supplier's email account had been compromised, and the payment details had been altered by a scammer.

A $28,000 payment was sent to a fraudulent account before the scam was discovered.

This example shows how convincing invoice fraud can be and why payment detail changes should always be independently verified.

How invoice fraud and billing scams work

An intercepted and modified invoice

If a cybercriminal has compromised your email or the account of a business you work with, they might wait until you (or the business) send an invoice for a large sum of money.

“The cybercriminal might intercept the invoice and change the account payable details to their own,” explains Sean. “For example, if you’ve hired a builder and the scammer has compromised their email, they can use the builder’s account to intercept and modify the invoice with new payment details.”

Here’s a breakdown of how this type of invoice fraud might happen:

1. The scammer compromises your email account
2. They wait for you to send an invoice to another business.
3. The scammer intercepts the invoice and alters the bank account details – they may also increase the amount payable.
4. They forward the modified invoice to the intended recipient.
5. The recipient unknowingly pays the scammer, thinking it’s a legitimate transaction.

Unexpected invoice for unpurchased goods or services

You might receive an email from a well-known business with an attached invoice and/or link. It may claim you need to pay for a product or renew a subscription. But here’s the catch - you never signed up for it.

Cybercriminals impersonate trusted brands and send phishing emails with fake invoices to trick you into paying for something you didn’t buy.

How to spot invoice fraud

Fake or fraudulent invoices can be hard to detect. Watch out for these common red flags:

• The email address doesn’t match the business or looks slightly different
• Payment details don’t match previous invoices or your usual records
• You receive an invoice for something you didn’t request
• There’s pressure to pay quickly or threats if you don’t
• The payment method or process is different from usual
• The email includes links or attachments that seem unusual
• The invoice or email looks unusual, with errors or formatting issues

How to protect yourself from invoice fraud and billing scams

Protect yourself (or your business) using Stop. Check. Protect.

STOP

Pause before making a payment, responding to an invoice, or updating payment details. Be cautious if you're being pressured to act quickly.

CHECK

Review invoices and emails carefully for anything unusual. Always confirm payment requests or changes to bank details using a trusted contact number (not the number provided in the invoice, email or message).

PROTECT

Keep your devices and software up to date and use verification processes to confirm payments. Regular scam awareness training can also help employees recognise and respond to suspicious requests.

Scam tactics can evolve over time. Staying informed about current scams can help you recognise warning signs and stay better protected. Explore the latest scams and security alerts.

What to do if you’ve been targeted by a scam

• Stop all contact with the scammer
• Report the scam to your bank and other relevant authorities immediately
• Secure your accounts and devices (for example, by changing passwords and enabling multi-factor authentication)

Where to report fraud and scams

If you suspect fraud on your account or have shared financial information or transferred money as a result of a scam, please contact your bank.

If you bank with ANZ, please contact us straightaway. Our Customer Protection Team is available 24/7 to help you.

You can also report scams to:

• ReportCyber (Australian Cyber Security Centre)
• Scamwatch (Australian Government)

For additional support, IDCare provides guidance on identity theft and cyber security concerns.