Tip of the Week: BBB warns of fake invoices tricking local businesses

INDIANAPOLIS — The Better Business Bureau Serving Central Indiana is seeing an increase in fake invoice scams.

While this scam typically targets businesses, anyone can be fooled by a phony invoice.

The invoice may arrive in your mailbox or e-mail and bills you for products or services.

“It’s just asking for a payment,” said Trinity Rairdon, a spokesperson for the BBB Serving Central Indiana. “Typically, it’s an invoice that shows up for something that maybe your business would typically order, or it might be something remarkably out of the blue.”

The BBB Scam Tracker has received reports from business owners who received fake invoices for office supplies, domain hosting services, and web services.

In a recent Scam Tracker Report, one scam victim reported, “Received an email saying my computer protection had been updated. I had been billed $310.37 and to call if this was not correct to receive a refund. Noticed syntax was off and address seems suspicious. Called but then hung up. They called me back but I did not answer.”

Another company reported receiving a fake invoice from a fraudulent company for an “annual renewal.”

A member of their staff told BBB Scam Tracker: “This came in the mail to our office titled “ACCOUNTS PAYABLE” with very little fine print to explain. They posed as being our website domain holder. We, of course, know who provides that service for us so we were not fooled.”

The scam is working.

Large corporations and small businesses lose billions each year to this scam.

“The red flags typically it’s a vendor you do not recognize, and so I always advise businesses to make sure their personnel is trained with the billing process,” said Rairdon. “Who are you doing business with? Who are you paying consistently? How does that payment process? What does it look like?”

Keep in mind that scammers are experts at imitating real agencies and companies, so make sure to double-check any invoice you receive. 

When in doubt, pick up the phone and verify directly with the company.

BBB tips to avoid fake invoice scams

• Encourage open communication. Make sure your employees feel comfortable approaching you if they have any concerns about specific invoices your company receives.
• Understand how your real invoices are delivered. Scammers may try to imitate companies you actually do business with, so make sure you know how all your legitimate billing processes work. Find out how and when invoices will be delivered, how payments will be made, and what happens when payments are overdue.
• Don’t be easily intimidated. Scammers love using intimidation tactics to make you pay without a second thought. They may even impersonate government agencies to add weight to their threats. Even if an invoice claims your payment is overdue and legal action will be taken if you don’t pay immediately, take some time to verify the claims before you pay.
• Create a procedure for inspecting incoming invoices. Choose a small group of employees to handle purchases, bill pay, and receive shipments. Then, create a process where employees check that products and services were ordered and delivered before they pay an invoice.
• Train your staff. Give your staff training on your invoice inspection procedures and make them aware of fake invoice scams. Keep in mind that scammers are experts at imitating official agencies, so emphasize the need to double-check all incoming invoices.