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5 tips you should know to avoid invoice fraud

Lead Product Manager Risk & Compliance

Invoice fraud is a growing threat to business. In our Data Sharing Community, we use our cloud platform to rate bank accounts' trustworthiness and alert our members to new fraud attempts.

Some tips from the CDQ Community on how you can avoid invoice fraud

  • Allow changes to bank accounts only following a four-eye principle
    The review of new or changed payment data should always be done by at least two people in order to reduce the risk of a social engineering attack and to increase overall attention.
  • Open communication within the organization in case of suspected fraud
    If there is a suspected case of invoice fraud, supervisors should be alerted immediately in order to take appropriate action. In order to reduce the fear of negative consequences if damages have already occurred, the company should establish an appropriate reporting system. A good system allows for a sanction-free identification of possible errors and their root causes (for example, CIRS).
  • Always validate new or changed bank details before using them
    Today, fraudsters are increasingly deploying social engineering methods to learn the customs and habits of individual employees in your company. Also, invoice forgeries are getting better and better thanks to increasingly powerful software; even experts find it difficult to identify them as fake. The only solution: check back with the sender .
  • Share the burden of verification
    If you dread the manual effort of checking back with senders yourself, join the CDQ Data Sharing Community. There, experts tackle the validation of bank data together, providing additional security and distributing the effort among peers.
  • Introduction of an invoice fraud warning system
    Implement a company-wide or cross company blacklist to alert all involved parties in the event of an active fraud attempt. One possibility: You can use the CDQ Blacklist also within your company

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