Fake invoice email scam: how businesses lose money

Fake invoice email scams are among the most damaging forms of cyber fraud affecting businesses worldwide. Attackers impersonate trusted suppliers and send convincing invoices that appear routine and legitimate.

Because payments are part of daily operations, many companies transfer funds before realizing the invoice was fake.

What is a fake invoice email scam?

A fake invoice email scam is a business-focused phishing attack where criminals:

• impersonate real vendors

• copy invoice templates

• modify payment details

• exploit trust and routine

This type of fraud is also known as business email compromise.

How the scam works step by step

1. Attackers research the target company

2. A trusted supplier is impersonated

3. A realistic invoice is emailed

4. Bank details are subtly changed

5. Payment is processed

6. The fraud is discovered later

Common fake invoice scenarios

• “Outstanding invoice reminder”

• “Updated banking information”

• “Urgent payment request”

• “Overdue account notice”

These emails often look identical to legitimate billing messages.

Why this scam is so effective

• Invoices are expected

• Amounts seem reasonable

• Urgency feels legitimate

• Details appear professional

Many victims report no initial suspicion.

Warning signs

• Sudden changes in bank details

• Slightly altered email domains

• Requests for secrecy

• Pressure to bypass procedures

What you should never do

• Never pay without verification

• Never trust invoice changes by email alone

• Never ignore internal approval rules

• Never rush financial decisions

How to protect your business

• Verify payment changes by phone

• Use multi-step payment approval

• Train staff to recognize invoice fraud

• Enable email security filters

• Keep supplier contact lists updated

Cybersecurity experts warn that fake invoice scams cause billions in losses globally.

Final thoughts

Fake invoice email scams exploit trust and routine. Strong verification procedures and staff awareness are the most effective defenses.