Glossary / Fraud & scams
Fake Invoice Scam
A fake invoice scam is a fraud where an attacker sends an invoice for goods or services that were never supplied, or from a supplier that does not exist, to trick a business into paying.
How does a fake invoice scam work?
A fake invoice scam relies on volume and plausibility. The criminal sends a bill for something that was never delivered, or invents a supplier entirely, betting that a busy accounts payable team will pay it without matching it to a purchase order. The amounts are often modest enough to slip under approval thresholds. A common Australian example is the unsolicited “renewal” invoice for a business directory listing, domain registration, or advertising that the company never ordered, styled to look like a genuine account that is simply due. If it reaches the right inbox during a busy period, it gets paid.
Why it matters for Australian finance teams
Fake invoices are a persistent drain because they exploit process gaps rather than technical weaknesses. The ACCC’s Scamwatch regularly warns Australian businesses about false billing, which remains one of the most reported scam types affecting organisations. For finance teams, the risk compounds when a fake supplier is added to the ledger, because it can then be paid again and again. Small individual amounts across many entities are easy to miss in reconciliation.
How ezyshield helps
ezyshield checks that a payee is a real, registered business you can legitimately pay before the money moves, confirming the person, the business through ABN and ASIC records, and bank account ownership. A supplier that does not genuinely exist or does not own the nominated account fails verification. ezyshield is not a full vendor management system, but every verification it performs is written to an append-only audit trail that is logged and never deleted. See how it works and ghost vendor fraud.
Also known as: fake invoice fraud, bogus invoice scam
Last updated: 7 July 2026
Related terms
- Invoice Fraud Invoice fraud is a scam where criminals send fake or altered invoices, often with changed bank details, to trick a business into paying money into an account they control.
- Ghost Vendor Fraud Ghost vendor fraud is a scheme where a fake or shell supplier is added to a company's vendor master file so payments can be made for goods or services that are never delivered.
- Supplier Impersonation Supplier impersonation is a scam where a fraudster pretends to be a legitimate supplier, using lookalike emails, letterhead, or phone calls, to redirect payments or submit fake invoices.
See also: Fake invoice scams , eInvoicing fraud in Australia , Ghost vendor fraud
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