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Fake invoice template for small businesses

foreign [Music] did you know invoice fraud poses a significant threat to small businesses as it causes substantial fraud losses and potentially debilitating operational consequences ing to the FBI just in the U.S alone invoice fraud costs businesses more than three billion dollars each year and given small businesses often lack the extensive fraud prevention measures of larger organizations this type of fraud can disproportionately impact small businesses in fact the U.S small business administration estimates that invoice fraud is responsible for more than a third of all reported fraud cases targeting small businesses and medius reports U.S companies are losing an average of three hundred thousand dollars annually to fraudulent invoices let's take a quick look at invoice fraud and some practical tips small businesses can use to reduce their chances of becoming the next victim invoice fraud occurs when scammers manipulate invoices or impersonate vendors to trick businesses into making unnecessary or fraudulent payments the anatomy of invoice fraud is typically comprised of a few different tactics and tricks the fraudster might impersonate a legitimate supplier or vendor that your small business currently utilizes by copying over their branding communication style and points of contact to create a false sense of trust they then might manipulate banking account information provided on invoices to direct the payments to their own account or simply create invoices hoping you overlook the additional payment request or amount scammers also frequently add a sense of urgency to the invoices sent by threatening to shut off service or charge additional fees for breaching timely payment requirements of the signed contract fraudster's Bank on the assumption that whoever is paying the bills for your business is rushing to get their work done and by the time they get around to reconciling month-end payments the money and scammers have already moved on earlier this year the Better Business Bureau warned of a scam circulating where current artists were impersonating Best Buy's Geek Squad claiming the business would owe hundreds of dollars for its annual subscription that is about to renew unless they call and cancel when the small business calls to cancel they are asked to confirm their bank account information to process the request once the information is handed over the frosters begin withdrawing money without consent processors can also inject malware into the small businesses computers once they click on links to download invoices or PDFs this then gives the fraudsters a whole new window into the small businesses Financial system while that might have seemed a little overwhelming I do have a few essential tips to share to help protect your business from invoice fraud number one verify verify I said it twice because it's so important and easy to do always verify the authenticity of an invoice before you pay it by contacting the vendor directly using trusted contact information meaning don't rely on the information on the invoice use the phone number or email that was included in the contract you signed or on their official website have the vendor double check the invoice and bank account number as the invoice might just be one or two numbers off also be extra cautious with new vendors consider using Google to confirm their address location name and contact information number two don't fall for the pressure regardless of whom the request is coming from don't fall for the pressure to approve immediately in fact if the request is urgent take extra time and verify the requests and amounts are legitimate before sending number three Implement internal controls and invoice matching make sure payments are only authorized by approved staff members and thorough verification measures are followed segregate duties consider matching invoices to purchase orders and keep an eye on how many invoices are coming in each month or week by vendor ask yourself do the amounts seem off does the timing seem off number four establish and follow secure payment processes have appropriate check and balances in place by including multiple levels of approval and segregation of Duties be sure you have secure channels for communication and policies and procedures for how invoices are paid you might also consider converting payments to more secure payment types like ACH or instant payments versus a check number five update software and systems regularly regularly security patches and updates also be sure your antivirus firewalls and business software are up to date number six educate employees educate your staff about invoice fraud and business email compromise like watching our other did you know videos encourage employees to be critical of requests and report suspicious activity though invoice fraud poses a significant threat to small businesses by adopting the proactive measures we just discussed you can reduce your chances of falling victim protect your business by safeguarding your finances with education and fraud prevention measures for further assistance and guidance reach out to your financial institution partner together we can all build a more secure business environment stay on top of other scams by watching our other fraud focused videos on business email compromise and identity theft have a video you'd like to see drop it in the comment section below and stay safe out there foreign