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ABN Verification Before Payment: Why and How

Checking a supplier's ABN is a good start. But on its own, it will not stop payment fraud. Here's what ABN verification tells you, what it doesn't, and what else you need.

ABN & ASIC checks

GST registration

Multi-layer verification

Why ABN verification matters

An Australian Business Number (ABN) is the primary identifier for businesses operating in Australia. Every legitimate supplier should have one, and checking it before you pay is a basic due diligence step that too many businesses skip or do inconsistently.

ABN verification catches several problems before they cost you money. It confirms the business actually exists and is currently active. It reveals whether the entity is registered for GST, which matters if they are charging it on their invoices. And it shows the legal entity name, so you can confirm it matches the supplier you think you are dealing with.

Without this check, you risk paying a business that has been deregistered, paying GST to an entity not registered to collect it (which means you cannot claim the input tax credit), or paying an entity whose name does not match the one on your purchase order.

ABN verification is free, takes seconds, and is publicly available. There is no reason not to do it. The question is what happens after you check the ABN, because the ABN alone does not protect you from the most common types of payment fraud.

How to check an ABN

The Australian Business Register is the authoritative source. Here is what to check and what each field tells you.

Search the Australian Business Register

Go to abr.business.gov.au and enter the ABN, ACN, or business name. The register is free, public, and updated regularly. You can also search by trading name if you do not have the ABN.

Check the ABN status

Confirm the ABN is "Active." A cancelled or inactive ABN means the entity is no longer registered. This is a red flag if they are sending you invoices and requesting payment.

Verify the entity name

Compare the registered entity name with the name on the invoice, purchase order, and your supplier records. Watch for discrepancies. A supplier trading as "Smith Building Services" might be registered as "J Smith Pty Ltd." Both could be legitimate, but you need to confirm the link.

Check GST registration

If the supplier is charging GST on their invoices, confirm they are registered for GST on the ABR. If they are not registered, you cannot claim the input tax credit, and it may indicate the invoice is fraudulent.

Note the entity type

The register shows whether the entity is a sole trader, partnership, trust, or company. For companies, cross-reference with the ASIC register to check the company status, directors, and registered address.

What ABN verification tells you (and what it doesn't)

ABN verification is necessary but not sufficient. Understanding its limits is critical to building a verification process that actually prevents fraud.

What ABN tells you

The business is registered and currently active
The legal entity name and any trading names
GST registration status and date
Entity type (sole trader, company, trust, etc.)
State of registration and postcode

What ABN does NOT tell you

Whether the person emailing you is authorised to act for the business
Whether the bank account on the invoice belongs to the business
Whether the invoice itself is legitimate
Whether the supplier's email has been compromised
Whether bank details have been changed since the last payment

The critical gap: ABN information is public. Anyone can look up any ABN. A scammer sending you a fake invoice will include a valid ABN because they simply copied it from the public register. ABN verification confirms the business exists. It does not confirm that the person contacting you represents that business, or that the bank details they provided belong to it.

Going beyond ABN: identity and bank verification

A complete supplier verification process adds two layers on top of ABN checks. Together, these three layers close every gap that fraud exploits.

Layer 1: Business (ABN/ASIC)

Validate the ABN is active. Cross-check with ASIC for companies. Confirm GST registration if applicable. This confirms the business exists.

Layer 2: Identity (biometric)

Verify the real person behind the payment request. Biometric identity checks confirm the individual is who they claim to be and is connected to the business. This stops impersonation.

Layer 3: Bank account (CoP)

Confirm the bank account belongs to the supplier via Confirmation of Payee. A live query to the receiving bank that confirms account ownership in real time. This prevents payment redirection.

EZYSHIELD

How ezyshield automates ABN verification

Manual ABN lookups work for one supplier at a time. They do not scale for hundreds of suppliers across multiple pay runs. ezyshield automates ABN/ASIC validation as part of a multi-layer verification flow that runs before every payment.

Automated ABN and ASIC checks

Validates the supplier's ABN against the Australian Business Register and cross-references ASIC registration for companies. Checks entity status, name, GST registration, and directors automatically.

Identity verification built in

Goes beyond ABN by verifying the person behind the request. Biometric identity checks confirm the individual is real, matches their claimed identity, and is connected to the supplier entity.

Bank account ownership via CoP

Confirms the bank account belongs to the supplier through live Confirmation of Payee. Closes the gap that ABN-only checks leave open. Learn more about ownership verification.

See How It Works

Supplier Verified

ABN Status Active

GST Registered Yes

ASIC Status Registered

Identity Confirmed

Bank Account Owner Match

Frequently asked questions

Why should I check a supplier's ABN before paying?

Checking the ABN confirms that the business exists, is currently active, and is registered for GST (if charging it). It is a basic due diligence step that helps you avoid paying fictitious businesses, cancelled entities, or suppliers misrepresenting their tax status.

How do I look up an ABN?

You can look up any ABN for free on the Australian Business Register (abr.business.gov.au). Enter the ABN or business name to see the entity type, registration status, GST registration, and trading names. For companies, you can also search ASIC Connect for registration details and director information.

Is ABN verification enough to prevent payment fraud?

No. ABN verification confirms the business is real, but it does not confirm who is contacting you or that the bank account belongs to the business. A scammer can look up any ABN on the public register and use it on a fake invoice. You need identity verification and bank account ownership checks on top of ABN validation.

What is the difference between ABN and ACN?

An ABN (Australian Business Number) is an 11-digit number used for tax and business identification. All business structures can have an ABN. An ACN (Australian Company Number) is a 9-digit number issued by ASIC specifically to registered companies. A company will have both an ABN and an ACN.

Can ezyshield automate ABN verification?

Yes. ezyshield automatically validates each supplier's ABN against the Australian Business Register and checks ASIC registration for companies. This runs as part of a multi-layer verification flow that also includes biometric identity checks and bank account ownership verification via Confirmation of Payee.

Go beyond ABN checks

ezyshield automates ABN validation, identity verification, and bank account ownership checks in a single flow. Every supplier, every payment.

Book a Demo How It Works