Fraudulent invoices and payment diversion scams

24 November 2023

Safeguarding against Fraudulent Invoices and Payment Diversion Scams

In recent months, there has been a surge in fraudulent invoicing and payment diversion scams targeting businesses. These malicious schemes aim to trick unsuspecting victims into making unauthorized payments or diverting funds meant for legitimate transactions.

Fraudulent Invoicing

Fraudulent invoices are fake bills sent by scammers posing as legitimate vendors. These invoices often request payment for fictitious goods or services that have never been rendered. Scammers meticulously craft these invoices to appear genuine, often using logos and brands from real companies, e.g., Dromon Bureau of Shipping.

Payment Diversion Scams

Payment diversion scams, involve intercepting legitimate invoices (e.g. through e-mail interception) and altering payment instructions to redirect funds to the scammer’s account.

DBS’s Commitment

DBS would like to emphasize that we have not changed our bank accounts and will not ask any client to remit money to another bank account. For new clients, we would urge them to confirm the bank details by phone and/or ‘WhatsApp’, by contacting a known DBS contact.

Protecting yourself from Scams

DBS urges all our clients to be vigilant against fraudulent invoices and payment diversion scams. Some precautionary measures to safeguard against such schemes are :

1. Scrutinize Unsolicited Emails and Invoices : Be wary of unsolicited emails or invoices, especially those with urgent payment requests or unusual sender addresses.
2. Verify Sender Credentials : Check the sender’s email address and domain. Ensure it matches the company’s domain and doesn’t contain typos or suspicious subdomains, e.g., ‘dronon’ or ‘dromom’.
3. Confirm Payment Instructions : Always double-check the payment instructions provided in the invoice. If in doubt, or making payment to the account for the first time, verify the bank details through a second channel to verify the legitimacy of the payment details.
4. Report Suspicious Activity : If you receive a suspicious email, invoice, or payment request report it immediately to the company and/or the relevant authority. Prompt reporting can help prevent others from falling victim to the scam.
5. Educate Employees : Regularly train your employees to identify fraudulent invoices and payment diversion scams. Emphasize the importance of verifying sender credentials, protecting sensitive information, and reporting suspicious activities.

By adopting these precautionary measures, you can significantly reduce the risk of falling prey to fraudulent invoices and payment diversion scams.