How to prevent digital invoice fraud in your business?
How to prevent digital invoice fraud in your business?
December 2024 - Invoice fraud affects countless individuals and businesses every year. With the rise of digital fraud, criminals are now also trying to digitally penetrate mailboxes or information systems, where they modify account numbers or create fake invoices.
In invoice fraud, criminals intercept a real invoice - often from a mailbox -, change the account number and send the modified version to the customer. When the customer pays, the amount reaches the scammer. With the rise of digital fraud - involving intrusion into mailboxes or information systems - the danger is only increasing.
The FPS Economy in our country receives hundreds of reports of this type of fraud every year. Businesses are often targeted in this respect, because of the higher amounts on invoices. As a victim, you cannot simply recover the amount. People often only notice the fraud when they receive a payment reminder, when the money has already been channelled through so-called money mules.
Banking federation Febelfin recommends a number of preventive steps to protect businesses (and consumers). First of all, it is advisable to compare the account number on the invoice with previous details, such as those on the order form or the supplier's official website. In addition, pay attention to warnings such as ‘changed account number’ and be careful when invoices suddenly mention a new account number. If in doubt, a phone call to the supplier can provide clarification. In addition, carefully check the sender's e-mail address to make sure the invoice comes from the correct source.
To further reduce the risk, Belgian banks are working on an IBAN name check that will become mandatory in the eurozone from 9 October 2025. This check will alert customers when the beneficiary's name and account number do not match, but the final decision remains with the customer.
Additional tips to prevent invoice fraud
Besides this basic advice, there are some additional measures you can take as a business owner or company employee to prevent digital invoice fraud:
Set up a double approval procedure: have payments above a certain threshold approved by two people. This makes it harder for fraudulent payments to slip through.
Use secure communication channels: conduct sensitive communication about invoices and bank details preferably via a secure system instead of regular e-mail, which is vulnerable to phishing.
Install strong IT security: make sure you have security software that prevents and detects attacks on email accounts. Regular updates and security training for employees strengthen digital security.