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Invoicing Scam Victim? Here’s What to Do.

By Bidvest Bank
15-09-2015
Invoicing Scam Victim? Here’s What to Do.
In our last article on invoicing scams , we explained what they are and how to prevent them. In a nutshell, invoicing scams are a type of banking fraud where a scammer changes the bank details on an invoice that’s been sent from a supplier to a customer, so that the customer pays that invoice to the wrong (fraudulent) bank account. 

Unfortunately, even if you take every possible precaution to prevent this type of scam, it can still happen. If you’re the unfortunate victim of an invoicing scam – either as a customer or a supplier – is there anything you can do to get your money back? Here’s our advice on what to do. 

1. Contact your bank immediately. As soon as you realise what’s happened, call your bank and tell them the situation. While they can’t guarantee it, your bank may be able to stop the payment from being processed if they haven’t yet released the funds. 

2. Contact the receiving bank. If your local bank has already sent the funds to the wrong bank account, your next course of action is to contact the receiving bank, as there may be a window of time in which they still have the funds and can reverse the transaction. In most cases, scams happen with a different bank to yours that is usually in a different country, so you’ll need to contact the overseas bank in question to see if you can recoup the money.  

3. Contact the police. If the funds have already been paid to the fraudster, your next step is to alert the police and open a case with them. Do this in the country of your and your supplier’s business and in the country of the bank to where the money has been sent. You may be able to get a fraud division involved who can investigate the scam and those involved.

4. Consider insurance. If you have business insurance in place, you may be able to claim back as a result of the fraud. Note that if you go this route, you’ll most likely have to prove that you’ve reported the matter to the police, and that you have a case number. You’ll also be interviewed by the insurance assessor who is assigned to investigate your claim.

Invoicing scamming can be devastating to your bottom line, and it can mean a huge dent in your cash flow. Although you may try to prevent it, if you are the unfortunate victim, the steps above may give you a good chance of recovering the money you’ve lost.  

No matter what industry you’re in, we can help with all aspects of your business banking. The Bidvest Bank One-to-One account streamlines your business banking by giving you one point of contact for all your needs. Find out more about it.