How to Spot Fake Invoices: A Complete Guide

Fake invoices are a common fraud tactic used in business transactions. Here’s a comprehensive guide to identifying suspicious invoices before they cost you money.

Red Flags in Invoice Content:

• Inconsistent formatting: Mixed fonts, misaligned text, or unprofessional layout compared to previous invoices from the same vendor
• Unusual payment details: New bank account numbers, different payment methods, or requests to pay to personal accounts instead of company accounts
• Generic company information: Vague business names, missing tax IDs, or incomplete contact details
• Spelling and grammar errors: Professional businesses rarely send invoices with obvious typos or poor grammar
• Round numbers: Suspiciously round amounts (e.g., exactly $5,000.00) without itemized details

Technical Verification Steps:

• Check PDF metadata: Use HTPBE to verify if the invoice PDF has been modified. A modified invoice is a major red flag
• Verify creation date: Does the PDF creation date match the invoice date? A 2023 invoice created in 2026 is suspicious
• Examine file properties: Check the creator/producer software. Does it match what the vendor typically uses?
• Compare with previous invoices: Look at metadata from legitimate past invoices for consistency

Business Verification:

• Contact the vendor directly: Call using a phone number from their official website, not from the invoice itself
• Verify invoice numbers: Check if the invoice number follows the vendor’s sequential numbering system
• Request a resend: Ask the vendor to resend the invoice from their official email address
• Cross-check amounts: Verify the invoice amount matches your purchase order or agreement

What to Do If You Suspect a Fake Invoice:

• Do not make any payment until verification is complete
• Report the suspicious invoice to your company’s fraud department or financial controller
• Document all communication and save the suspicious PDF file
• Contact the legitimate vendor to inform them their identity may be compromised
• If you’ve already paid, contact your bank immediately to attempt reversal

Prevention Best Practices:

• Establish vendor verification procedures before processing any invoices
• Use HTPBE to routinely check invoice PDFs for modifications
• Maintain a database of verified vendor payment details
• Require dual authorization for payments over certain thresholds
• Train staff to recognize common invoice fraud tactics

Remember: Taking 5 minutes to verify an invoice can save thousands of dollars in fraud losses. When in doubt, always verify directly with the vendor through official channels.