Fake Invoice Scams are on the Rise

Businesses around the world are being struck with a cyber-attack that sends victims a fake invoice that looks real enough to fool to most employees. It’s an old scam that used to see bills faxed or mailed in, but it’s made its way into the digital world and instances are on the rise.

Chances are you’ve already seen some of the less effective attempts, like an email advising your domain is expiring, except it’s not from your host and your domain is nowhere near expiration. These new attacks are more advanced, in that they look completely legitimate and are often from contractors or suppliers that you actually use.

Logos are correct, spelling and grammar are spot on, and they might even refer to actual work or invoice numbers. The sender name may also be the normal contact you’d associate with that business, or even a co-worker, as cybercriminals are able to effectively ‘spoof’ real accounts and real people. While it’s worrying that they know enough about your business to wear that disguise so well, a successful attack relies on you not knowing what to look for, or even that fakes are a possibility. With that in mind, here are two types of invoice attacks you might receive:-

The Payment Redirect

This style of fake invoice either explicitly states payment should be made to a certain account, perhaps with a friendly note about the new details, or includes a payment link direct to the new account. Your accounts payable person believes they’re doing the right thing by resolving the invoice and unwittingly sends company money offshore.

The problem usually isn’t discovered until the real invoice from the real supplier comes in or the transaction is flagged in an audit. Due to the nature of international cybercrime, it’s unlikely you’ll be able to recover the funds even if you catch it quickly.

We have come across two small business customers recently which have been affected by this scam, locally in Lutterworth and Burbage, so it does happen to businesses of all sizes.

You may well be thinking that you would not be caught out by this – but can you say that about all your employees?

The Malware Click

Rather than go for the immediate cash grab, this style of attack asks your employee to click a link to download the invoice. The email may even look like the ones normally generated by popular accounting tools like Quickbooks (or some other well known accounting package), making the click seem safe. Once your employee has clicked the link, malware is downloaded that can trigger ransomware or data breaches.

While an up-to-date anti-virus should block the attack at that stage, it’s not always guaranteed, especially with new and undiscovered malware. If it does get through, the malware quickly embeds itself deep into your systems, often silently lurking until detected or activated.

How to Stay Safe

Awareness is key to ensuring these types of attacks have no impact on your business. As always, keep your anti-virus and spam filters up to date to minimize the risk of the emails getting through in the first place. Third party spam filters on top of your security software may also help.

Then, consider implementing a simple set of procedures regarding payments.

These could include verifying account changes with a phone call (to the number you have on record, not the one in the email), double checking invoices against work orders, appointing a single administrator to restrict access to accounts, or even two-factor authorisation for payments.

Simple pre-emptive checks like hovering the mouse over any links before clicking and quickly making sure it looks right can also help. Like your own business, your contractors and suppliers are extra careful with their invoicing, so if anything looks off – even in the slightest – hold back on payment/clicking until it’s been reviewed.

Also consider placing a message on your email signature which includes the warning that you would never advise of a change your bank details by email – only by phone or personally – to help prevent other people from falling for it.

Fake invoices attacks may be increasing, but that doesn’t mean your business will become a statistic, especially now that you know what’s going on and how you can stop them.

If you need help to increase your security, talk to us today. Call us on 01455 209505.