Data Protection and GDPR Level 3 for Managers and Business (VTQ)

64 videos, 2 hours and 55 minutes

Course Content

Invoice fraud

Video 49 of 64
2 min 40 sec
Want to watch this video? Sign up for the course or enter your email below to watch one free video.

Unlock This Video Now for FREE

This video is normally available to paying customers.
You may unlock this video for FREE. Enter your email address for instant access AND to receive ongoing updates and special discounts related to this topic.

Invoice fraud is a new form of crime which can also be a data protection risk.  This is becoming more and more common, and in its simplest form, it's where companies receive a fake invoice in the hope that it will be paid, without checking if it is actually real.

The next level is where a fraudster gains information about an existing business relationship and tries to change the bank details on the invoice to their own. The fraudster can often go to great lengths to obtain this information and it can be very hard to detect.

The crime is only detected when the genuine company contacts you about non-payment.  All businesses, large and small, can be affected. Email addresses can also be subtly changed, so there is also a high risk of data being transferred by mistake to the fraudster when you think you are sending it to the genuine company.

All employees need to be vigilant and make all the necessary checks, especially when a request is received to change contact or bank details.

The HSBC offer some simple steps that will protect against invoice fraud and they have more information on their website.  We have put the link on the student resources section of this course.  The suggestions for invoice fraud protection are:

- To ensure that all employees who process supplier invoices and have the authority to change bank details are vigilant. They should always check for irregularities including changes to supplier names and addresses and changes to invoiced amounts.- Changes to supplier financial arrangements should always be verified with that supplier using their established on-file details.

- When a supplier invoice has been paid, it is good practice to inform that supplier of the payment details made, including the account the payment was made to.- Check the company or organisation bank statements carefully. All suspicious debits should be reported to your bank immediately.

- If you are suspicious about a request, ask if you can call back. Do so using their on-file contact details to establish if they are the genuine supplier of the goods or services.

- Perpetrators of fraud often conduct extensive online research to identify suppliers to particular companies and organisations. Consider if it would benefit your company or organisation to remove this information from your website and other publicly available materials.