Has your business fallen victim to invoice fraud?
- Business News
- Managing a Business
Did you know? Almost one in five small businesses in Australia have fallen victim to invoice fraud.
According to a recent survey conducted by Xero, approximately 18% of small businesses have been defrauded by scammers for an average sum of $15,500.
Over 1000 small businesses took part in the survey from all over Australia and across various industry sectors.
What is invoice fraud?
Invoice fraud (also known as “false billing”) is a scam invoice system run by cyber criminals where demands of fraudulent payments are requested from targeted businesses.
Phishing scams, fake invoices, fraudulent offers, and account hacking are all common attacks of invoice fraud, where criminals impersonate a person or business that their target already has a relationship with.
Of those businesses surveyed, larger small businesses were hit hardest, losing on average $25,370 where micro businesses and sole traders lost an average of $16,160 to invoice scams.
How can your small business avoid invoice fraud?
As small businesses move towards digital solutions for their accounting needs, it is also important to consider measures of protection from fake online scams.
While online account security is a must, the survey results revealed 28% of small businesses don’t spend any money on protection and education for their business.
Further to this, only 42% of businesses surveyed said they could confidently spot a fraudulent invoice.
Automated management solutions are important in any small business to detect scams as fast and quickly as possible.
To detect fake invoices, offers and phishing attempts, automated accounts payable solutions mean changes or inconsistencies are brought to the attention of small business owners and their accounting team.
E-Invoicing also helps to reduce the risk of being scammed as electronic exchange invoices directly between accounting software systems via a secure and trusted network – meaning the days of relying on an email will be over.
“The E-Invoicing process offers peace of mind that invoices businesses receive are from a trusted supplier.”XERO BUSINESS
To find out more on invoice fraud and switching your accounting over to a trust online system, book your obligation free appointment with the team at Elevate Accounting HERE.