Invoice scams lead to more business losses than any other type of fraud, new figures show
UK businesses lost more money to fraudsters using “invoice scams” in the last three months than to criminals using any other form of swindle, new data from Barclays shows.
Most (55%) of the money lost to scammers between December 2021 and February 2022 was lost through invoice scams, the figures show, as invoice scams – through which fraudsters file fake invoices to businesses – emerged as the major source of losses.
Small and medium enterprises (SMEs) lost an average of £2,100 to invoice scams, as fraudsters tricked businesses into handing over cash by forging invoices.
Meanwhile, total losses increased by 13 per cent over the past year, even as the total number of scams dropped, as fraudsters succeeded in pulling off a smaller number of high value swindles.
At the same time, Barclays figures show that only 14 per cent of SMEs seek to confirm invoices are correct.
Joe Cooksey, Head of Business Digital Education at Barclays, said: “Scammers really are social engineers of the highest order, so it’s vital that business owners and their staff remain vigilant, and if doubt, double check with their bank or a source they know is genuine.”
The call comes amid concerns that fraudsters may seek to take advantage of those seeking to switch their energy supplier.
“Businesses are under a huge amount of pressure at the moment as they prepare for the new financial year and navigate additional challenges wrought by rising costs,” Cooksey said. “We know that fraudsters will be looking to take advantage of busy business owners and will ramp up their efforts.”