A woman from Shreveport, Louisiana, pled guilty to embezzling thousands of dollars from her employer after being investigated by the FBI.
The scheme involved the creation and submission of fake invoices, allowing her to fraudulently obtain payments from her workplace.
The criminal conduct was specifically documented as occurring in October 2020, when she used these fraudulent methods to divert funds for personal use.
Sources: https://www.justice.gov/usao-edla/pr/shreveport-woman-guilty-embezzlement-her-employer
Commentary
Fake invoice scams are often difficult to identify because the fraudulent documents can look very legitimate at first glance, especially when scammers use real company names, branding, and contact details that closely mimic authentic vendors.
Many organizations receive large volumes of invoices regularly, and when manual invoice processing is in place, it becomes challenging to scrutinize every detail carefully.
Scammers often rely on creating a sense of urgency or using urgent payment requests to pressure recipients into bypassing usual verification processes, which increases the risk of fraudulent transactions slipping through.
Additionally, if payment details such as bank accounts or addresses are subtly altered but similar to genuine ones, these changes can be easily overlooked unless verified against established records.
This combination of volume, seemingly authentic appearance, and psychological pressure makes fake invoice scams particularly insidious.
Signs that an invoice may be fake include:
- Differences or discrepancies in the vendor's contact information or payment address compared to previous legitimate invoices.
- The invoice might show bank account details that differ even slightly from those known to belong to the vendor.
- An invoice may contain urgent language pushing for rushed payment without valid justification, intending to circumvent normal approval checks.
- Visual quality can be inconsistent, with poor formatting, low-quality logos, or mismatched fonts that do not align with a legitimate vendor's standards.
- There may be mismatches in the items billed on the invoice versus purchase orders or delivery records, such as services not rendered or quantities that do not match orders.
- Unusual invoice amounts - either significantly higher or lower than expected.
- Duplicate invoices or repeated invoice numbers for the same goods or services.
If you suspect an invoice is fake, the first step is to stop and think critically before making any payment. Verify the invoice details independently by contacting the vendor directly using contact information from existing trusted records, not information provided on the suspicious invoice itself.
Cross-check the invoice against purchase orders, delivery receipts, and past invoices to confirm consistency.
Examine the invoice formatting, check for irregularities, and scrutinize payment instructions for sudden changes. If discrepancies persist or you cannot verify the vendor's legitimacy, escalate the matter internally by involving your accounts payable department.
Implement multi-level approval processes and consider audit trails for invoice handling to reduce risks.
Involving law enforcement becomes appropriate if there is clear evidence of attempted or actual financial loss stemming from fraudulent invoices or if the suspicious activity indicates a deliberate criminal scheme with potential wider implications. For instance, if fraud is detected that involves large sums of money, repeated offenses, or insider complicity, reporting to authorities helps protect your organization and others from further harm.
Early reporting can aid investigations and recovery efforts and deter future scams. Always document the suspicious invoices and any communications related to your suspicion before involving law enforcement. This process ensures a thorough and formal response to protect your organization and uphold legal accountability.
