Invoice fraud cost UK firms 93 million last year

A recent survey conducted by UK Finance revealed that more than four in 10 UK businesses are unaware of the potential risks associated with invoice fraud.

Last year these scams cost UK firms almost £93 million, with 3,280 invoice and bank scam cases reported – costing on average £28,000 per case.

Fortunately, in 2018, £29.6 million of the money lost to this type of fraud was returned to business customers.

UK Finance’s survey indicated that 84 per cent of large businesses were aware of the threat of invoice fraud, compared with 68 per cent of small businesses and just 55 per cent of sole traders.

Even though large firms were more likely to have taken the necessary precautions to protect themselves against these scams, they were also more likely to be the target of invoice fraud.

Managing Director of Economic Crime at UK Finance, Katy Worobec, said: “Invoice fraud could happen to businesses of all sizes. The gangs behind this type of fraud are increasingly sophisticated and will often get hold of details that allow them to pose convincingly as regular suppliers.”

If you feel like you have been a part of an invoice or mandate scam, it is important that you contact your bank straight away.

Link: Businesses lose £93m to invoice scams in 2018 but four in ten unaware of risk