How Every Finance Manager Can Enable Secure Online Invoicing and Comply With Government Mandates For Electronic Invoicing As Quickly As 30 Days Or Less.
Business Solutions To Prevent Invoice Redirection Fraud
Invoice Redirection Fraud
Sending and receiving invoices using e-mail is not a secure way of conducting business. The incidence of invoice redirection fraud is increasing all the time and puts small to medium size businesses at risk. Australian’s are now losing AUD$340 million per year to scammers, and in the UK the Action Fraud agency has put the cost to SMEs at £18.9bn.
Invoice redirection fraud is relatively simple for scammers to implement which is the scary part about it. A fraud will pose as a genuine supplier and then instruct that payment is made to a bank account that they have control over.
How Is Invoice Redirection Fraud Implemented?
This is usually achieved by the fraud having hacked your invoicing system or your suppliers invoicing system and gotten hold of information about a legitimate invoice. An invoice is fabricated with false bank account information and presented to your customer. In many cases you won’t know you have been scammed until a supplier contacts you about an unpaid invoice.
There is also the opposite of this where your invoice information is used to go and defraud your customers into paying the scammer, another situation that you don’t want to have unfold.
Are You At Risk?
In situations where your business is following the practice of sending and receiving invoices by e-mail then the chance for a scammer to implement invoice redirection fraud is ever present.
If you believe you are at risk then you will want to engage an IT Business Solutions consultant to review your options in locking down the risks.
An area that Aegina Business Solutions focus on is the implementation of E-Invoicing systems that provide a secure environment for the sharing and processing of invoices. The Australian government is encouraging business to implement these systems to curtail fraud in this area.
Read about Paperless Connect in the next section and contact us if you would like to discuss options to re-model the way you handle invoicing.
E-Invoicing is the sending/receiving of legal and tax compliant invoices in a readable electronic format. Moreover, it includes the electronically archiving of the invoices issued/received and the automatic entry of its data to the ERP systems of the companies.
E-invoicing solutions allow companies to optimise their invoice management and thus their corporate finances by reducing costs, increasing elasticity of costs and improving working capital.
IMPACT as a leader provider in high quality B2B e-services since 1998, has developed and offers the innovative e-invoicing service ‘Paperless Connect’ in all key sectors of the economy such as in retail, industry, telecommunications, banks, pharmaceutical industry and services.
The Paperless Connect service offers to companies across sectors the required electronic interface for an organised and integrated communication with their business partners, while securing the electronic invoices’ delivery to their customers and providing a reliable and precise delivery report.
During today’s challenging economy e-invoicing is a strong driver to process automation and improvement of financials.