What is invoice fraud?

Invoice fraud is when someone tricks a business into paying money to an account they control, usually by sending a fake invoice or by changing the bank details on a real one. The most common form in Australia is payment redirection, where an attacker reads a business's email, intercepts a genuine invoice, and alters only the payment details.

The main types

  • Payment redirection: a genuine invoice is intercepted and the bank details are swapped. The most common and most costly form.
  • Business email compromise: an attacker gets into a real mailbox and sends payment instructions from it.
  • Fake supplier invoices: an invoice for goods or services that were never supplied, often for a plausible small amount.
  • Impersonation of a director or boss: an urgent request to pay something quickly and quietly, timed for when the real person is unreachable.
  • Duplicate or inflated invoices: real supplier, real work, wrong amount or billed twice.

How the attack usually runs

It is patient, not opportunistic. The typical sequence looks like this:

  • A mailbox is compromised, at your business or your supplier's.
  • The attacker reads quietly for weeks, learning who pays what and when.
  • A lookalike domain is registered, one character off the real one.
  • A genuine invoice is copied and the bank details changed.
  • It is sent at the moment a payment is expected, often with mild urgency.
  • The money is withdrawn and moved on within hours.

Why it works on careful people

Because nothing about it looks like a scam. The supplier is real, the invoice is real, the work was done, the amount is right. Only the destination is wrong, and that is the one detail nobody re-reads.

What actually stops it

Checks that run before money moves, every single time: verifying bank details out of band, comparing payee details against payment history, requiring a second approver on any change, and holding the pay run when something does not match.

RILLA Shield runs those checks automatically across invoices, payees and payment files, so the protection does not depend on anyone remembering.

Common questions

What is the difference between invoice fraud and business email compromise?

Business email compromise is the method — an attacker gaining access to or impersonating a legitimate email account. Invoice fraud is usually the outcome, where that access is used to redirect a payment.

How much does invoice fraud typically cost a business?

It varies widely, but because the attack is aimed at a real invoice, the loss is usually the value of that invoice — often a full progress payment or a whole pay run.

Is invoice fraud covered by insurance?

It depends entirely on your policy. Some cyber and crime policies cover social engineering losses, many exclude them. Check the specific wording with your broker before you need it.

Make the check automatic

RILLA Shield scans invoices and payee details before payment, flags supplier bank changes, and can hold a pay run automatically when something looks wrong.

See how it works

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Last updated 22 August 2026. General information only, not legal or financial advice.