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Invoice scams around Christmas

Criminals are especially busy in the lead-up to Christmas as they rely on people and businesses being distracted, rushing and missing things they might usually spot.

Learn the ways scammers want to catch you out with invoice scams.

On this page:

What is an invoice scam?

Spot the signs of invoice scams

How to protect yourself from invoice scams

Report fraud

What is an invoice scam?

An invoice scam is when a criminal attempts to trick a business into paying a fake invoice. UK Finance data shows that:

£50.3m

was stolen in the UK in the past year through invoice scams.

70%

of invoice scam losses occurred on a non-personal account.

Scammers pretend to be one of your suppliers and tell you that their payment details have changed.

They provide you with new account details to pay their invoices and often create urgency to make you change the details quickly, without thinking.

Spot the signs of invoice scams

Step 1: Scammer researches the business and supplier

Scammers will do their research. They’re often aware of the detailed relationships between businesses and their suppliers and know when regular payments are due.

They may get this information by hacking into email accounts to intercept messages between businesses and suppliers, or through an account takeover. They quickly find out which suppliers a business uses and how they usually send and receive invoices.

Step 2: Scammer asks the business to change their bank details

The fake supplier will then make contact with the business by email, phone or letter. They will mimic the trusted supplier's style of contact to make their communication look authentic.

According to UK Finance data, 80% of the cases reported in 2023 came via email.

They tell you that they have changed their bank account details and make a formal request for you to update the details you hold for them in order to pay their invoice.

Example image of a business outlook account receiving what looks like a genuine invoice from a supplier

Step 3: Scammer steals your money

Believing that the email, phone call or letter is from the real supplier, the business then updates the bank account details. They then pay the invoice and the funds go to an account that the scammer has access to.

The business does not often realise they have been scammed until the genuine supplier chases for non-payment.

Example image of a business outlook account receiving what looks like a genuine overdue invoice and then paying them through their mobile app

How to protect yourself from invoice scams

  • Be suspicious of unexpected contact to change or update bank details. This should be viewed as a high risk activity. Always contact the supplier directly to confirm this, before making a change.

  • Educate staff with responsibility for processing invoices to be alert to scams and unexpected payment requests. Make sure they always check for irregularities and raise concerns immediately.

  • Set up single points of contact with regular suppliers where possible.

  • Check accounts daily to help quickly identify potential fraud payments.

Report fraud

If you hold a business account with us and have experienced an invoice scam recently or have received a fraudulent request, contact us immediately on 159.

Lines are open 24 hours a day, 7 days a week. Call charges.