Police say sector is vulnerable ‘because it relies on complex supply chains’
The National Crime Agency and National Federation of Builders have launched a joint campaign aimed at accounts payable professionals and finance personnel in the construction industry that highlights the risks of invoice fraud.
The NCA said the industry is especially vulnerable to invoice fraud because it relies on complex supply chains often involving contractors, sub-contractors, consultants and suppliers, frequent high value payments and reliance on emails to communicate payment instructions which criminals can compromise.
Invoice fraud happens when criminals deceive individuals and businesses into paying fake invoices or diverting a genuine payment into accounts controlled by fraudsters.
Fraudsters can impersonate suppliers, intercept emails or send convincing invoices to generate immediate payments into their own accounts. The aim is to manipulate victims into transferring funds to the fraudsters instead of their legitimate destination.
The deputy director of fraud at the National Economic Crime Centre in the NCA, Nick Sharp, said: “Invoice fraud is one of the highest harm types of fraud experienced by victims and it has a huge impact on those who become a victim. Businesses can be destroyed by a loss of cashflow from a fraudulent payment, families and livelihoods are at serious risk of collapse if fraudsters are successful
“This campaign is a vital part of our strategy – by raising awareness and strengthening defences within the construction sector, we can significantly reduce opportunities for criminals to succeed.”
NCA guidance for preventing fraud
CHECK for any changes to invoice details, bank details or if you are being pressed for an urgent payment
VERIFY by calling the genuine supplier on a previously used phone number before you transfer money, as emails can be intercepted or diverted
NEVER transfer money until you are satisfied the details are correct
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