Is a fake invoice using a well-known supplier's name a scam?
Yes. Invoice fraud involves sending convincing fake invoices using legitimate company names and branding, counting on busy accounts teams to pay without checking.
Last reviewed: 1 August 2026
Explanation
Invoice fraud exploits the trust that businesses place in established supplier relationships. A fraudulent invoice arrives with a recognised company's name and logo — sometimes even the correct account number or reference — but with a fraudulent bank account substituted. In other variants, scammers send invoices for services never ordered, hoping that large organisations with many suppliers will pay without rigorous checking.
Both variants are volume games aimed at process gaps rather than people. The never-ordered version deliberately uses plausible, unmemorable line items — directory listings, domain services, maintenance renewals — priced low enough to fall under approval thresholds and get paid on routine. The substituted-account version is timed against your real payment runs, sometimes informed by a compromised mailbox at the supplier or an insider's knowledge of the billing cycle. The invoice document itself can be pixel-perfect; the bank account is the only element that has to be wrong.
The defence is the discipline your accounts process already claims to have: match every invoice against an approved purchase order and goods receipt, verify any new or changed payment details by phone with your known supplier contact, and check that the account on the invoice matches the one in your payment system before releasing funds. Treat bank detail differences as an incident, not an update. If a fraudulent invoice was paid, contact your bank immediately to attempt recall and report to your national fraud authority — and review which control the invoice slipped through.
Common red flags
- Invoice bank details differ from what is on file for this supplier
- Invoice is for services or goods with no matching purchase order
- Invoice numbering sequence does not match your history with this supplier
- Contact details on the invoice differ slightly from the supplier's official records
What to do now
- Match every invoice to an approved purchase order before paying
- Call the supplier's known number to verify any invoice with changed bank details
- If a fraudulent payment was made, contact your bank's fraud line immediately
- Report to your national fraud authority and review your payment authorisation controls
Frequently asked questions
Should I compare every invoice against a purchase order?
Yes — a three-way match (purchase order, goods receipt, and invoice) is standard accounts-payable practice and the most effective defence against invoice fraud.
Why do fake invoices tend to be for small, boring amounts?
Small amounts fall below approval thresholds and attract no scrutiny, and generic services like listings or renewals are hard to disprove. The fraud profits from volume — many small invoices paid on routine across many companies.
How did the fraudster know our supplier and reference numbers?
Common sources are a compromised mailbox at either company, invoices intercepted in transit, or details leaked in breaches. Accurate references make the document convincing, which is why verification must focus on the bank account, not the paperwork.