Invoice fraud is one of the fastest-growing threats to UK businesses, costing organisations billions of pounds each year. Whether you’re a small business or a large enterprise, fraudsters are constantly finding new ways to intercept payments and divert funds to illegitimate bank accounts.
At Creditsafe, we help businesses fight back. Our Bank Account Verification tool gives you the confidence that you’re paying the right person or company, before the money leaves your account.
Invoice fraud occurs when a fraudster tricks a business into paying a fake or altered invoice, typically by posing as a legitimate supplier or vendor. In many cases, the fraudster will change the bank account details on the invoice so the money ends up in their account instead of the intended recipient’s.
Email compromise
Hackers gain access to your supplier’s or your own email accounts and intercept or alter payment communications.
Fake invoices
Fraudsters create convincing replicas of genuine invoices, complete with logos, signatures, and invoice numbers.
Change of bank detail scams
Criminals impersonate suppliers and send official-looking emails requesting that future payments be made to a new bank account.
Invoice fraud often goes undetected until it’s too late. Once the funds have been transferred to a fraudulent account, they are often quickly withdrawn or moved, making recovery extremely difficult
For many businesses, a single instance of invoice fraud can:
According to UK Finance, businesses lost over £50 million to invoice and mandate scams in a single year, and that’s just the reported cases.
Engineering Company Duped by Invoice Intercept Scam
An established UK engineering firm received what appeared to be a legitimate invoice via email, claiming the supplier had changed their bank account details. The email perfectly mimicked the supplier’s tone and branding. Trusting the correspondence, the firm paid around £50,000 into the new account. A week later, the actual supplier contacted them, unaware of any change — the email had been intercepted, altered, and sent by scammers.
Key takeaways from the case:
The scam involved email interception and editing of invoices.
This case perfectly illustrates how sophisticated invoice fraud can be—and why verifying updated bank details independently is vital.
Source: Financial Ombudsman
There are several steps businesses can take to reduce their risk:
Verify bank details independently – Never accept changes to payment information via email alone.
Use a verification tool – Validate the bank account against the company or individual you’re expecting to pay.
Train your finance team – Help staff spot red flags like urgent payment requests or changes in communication style.
Implement dual approval – Require two people to sign off on any bank detail changes or large transactions.
Review payment processes regularly – Audit your procedures to identify any weaknesses.
Invoice fraud is no longer just a finance issue—it’s a business-wide risk. Creditsafe’s Bank Account Verification tool gives you a simple, reliable way to protect your payments and ensure your money goes to the right place.
With Creditsafe, you can instantly check whether a UK bank account is genuinely registered to the company or individual you intend to pay.
Confirm bank account ownership
Instantly verify that the bank account belongs to a legitimate UK business or individual.
Validate new or updated bank details
Ensure changes to invoices or payment methods aren’t part of a fraud attempt.
Prevent invoice fraud before it happens
Flag mismatches and suspicious accounts before sending funds.
Reduce manual checks and errors
Integrate verification into your payment processes for faster, safer approvals.
This tool is built directly into the Creditsafe platform and available via API, so you can carry out checks in real time, integrate seamlessly into your ERP or finance systems and automate due diligence at scale.
Whether you’re paying suppliers, contractors, or customers, bank account verification should be a standard part of your payment process. It’s a simple step that could prevent thousands in losses—and protect your reputation.
Fake invoice scams involve fraudsters sending invoices that appear to come from legitimate suppliers. These invoices often include real-looking branding, contact details, and urgent payment terms to pressure finance teams into paying quickly. The goal is to trick the business into transferring funds to a fraudulent bank account. Once the money is sent, it’s often impossible to recover.
To spot a fake invoice, look for inconsistencies such as unusual payment instructions, unfamiliar email addresses, or contact details that don’t match previous correspondence. Check for poor spelling or formatting, and verify any unexpected changes to bank account details. Always confirm suspicious invoices directly with the supplier using a known contact method.
Key warning signs of invoice fraud include:
A sudden change in payment or bank account details
Invoices with rounded totals (e.g., £2,000.00)
Duplicate invoices for the same goods or services
Slight differences in email addresses or domain names (e.g., .com vs .org)
Pressure to pay quickly or outside normal processes
Invoices that don’t match purchase orders or delivery records
In an overpayment scam, the fraudster sends an invoice with an inflated amount or pretends to overpay a legitimate invoice. They then request a refund for the “overpaid” amount, which is sent to a fraudulent account. This tactic is used to trick businesses into transferring additional funds after an initial transaction appears successful.
Invoice fraud can have a serious impact on supply chain operations. If payments are misdirected, legitimate suppliers may halt deliveries, leading to delays, lost revenue, and damaged relationships. Rebuilding trust and restoring supply chain stability after a fraud incident can be time-consuming and costly.
Invoice mirroring is when a scammer creates a nearly identical copy of a legitimate invoice from a trusted vendor. They may replicate logos, formatting, and even invoice numbers to make the fake invoice appear genuine. The goal is to deceive businesses into paying the fake invoice instead of the real one.
If you suspect that your business has fallen victim to invoice fraud or a payment scam, it’s essential to act promptly. Here’s what to do:
1. Contact Your Bank Immediately
Inform your bank or payment provider as soon as you notice the fraud. If the funds haven’t yet cleared, there may still be a chance to stop or recover the payment.
2. Report the Fraud to Action Fraud (UK)
Action Fraud is the UK’s national reporting centre for fraud and cybercrime.
Forward phishing emails to: [email protected]