W ithin Essex, detectives are looking into reports that GP surgeries and other organisations have received fraudulent invoices for office supplies, resulting in financial losses currently estimated in the tens of thousands of pounds. So far, five individuals have been arrested and interviewed on suspicion of fraud in connection with the case. All five have been released on bail with conditions as the investigation continues. What is invoice fraud? Invoice fraud occurs when criminals trick a business into transferring money to a fraudulent bank account, often by sending a fake invoice that appears to come from a trusted supplier or service provider. Scammers may impersonate existing business partners or hack into legitimate company emails, altering payment details on genuine invoices so that funds are redirected to their own accounts.
How to guard against invoice fraud
What to do if you fall victim to invoice fraud
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Treat any email or message requesting a change in payment details with suspicion. Always verify such requests by contacting the supplier directly using established contact information, not the details provided in the suspicious message. Be cautious if you are pressured to make immediate payments or if the invoice lacks clear payment terms—these are common tactics used by fraudsters to rush decisions. Regularly reconcile invoices against your own records and confirm that you are being billed for goods or services you have actually received. Implement a robust payment approval process involving multiple staff members, such as finance and procurement teams, to cross-check and validate invoices before payments are made. Verify supplier details before making any payments, comparing the information on new invoices with that on previous legitimate ones. Limit the amount of supplier information published online, as public details can be exploited by scammers to make their fraudulent invoices more convincing. Provide ongoing training to employees so they can recognise the warning signs of invoice fraud and understand the correct procedures to follow.
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Act swiftly. The sooner you respond, the greater the chance of recovering lost funds. Immediately contact your bank to report the fraudulent payment—this may allow them to freeze or reverse the transaction and block further payments to the scammer. Report the incident to authorities such as Action Fraud, and gather all relevant evidence, including the fraudulent invoice, correspondence, and payment records, to support the investigation.
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Utilising technology for protection Adopting digital invoicing and automated invoice-matching systems can significantly reduce the risk of invoice fraud by flagging discrepancies and ensuring only verified suppliers are paid. These tools also streamline record-keeping and make it easier to detect suspicious activity. By remaining vigilant, verifying payment details, and using technology to strengthen internal controls, you can better defend yourself and your business against the persistent threat of invoice fraud.
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COUNTER FRAUD | SCRUTTON BLAND | 1 1
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