$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
supplier impersonation payment fraud
Scammers create fake supplier identities or compromise real supplier email accounts to submit fraudulent invoices for goods or services never provided.
“email scam”
↑ 1%Key indicators
Usually targetsProcurement teams
Often hitsFreelancers and contractors
Common regionGlobal
Last updated2026-04-04
Estimated impact
$90K
median reported loss
Typical range$9.0K – $900K
Recovery rate~15%
Annual reports21,489
Scam breakdown
1
Scammers compromise a supplier's email or create a convincing lookalike domain
2
They submit invoices for legitimate-sounding goods or services to the victim company's accounts payable
3
Payments are made to fraudulent accounts, sometimes recurring for months before detection
What to do first
Verify all new suppliers through independent research and phone confirmation before making any payments
Related terms
fake supplier invoice scamsupplier BEC fraudphantom vendor schemeBusiness email compromiseEmailStableProcurement teamsAccounts payable teamsSmall business ownersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsGlobalfake supplier invoice scamsupplier BEC fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Paul, 35, a procurement teams, encountered what appeared to be a legitimate business email compromise situation while using Email. Scammers compromise a supplier's email or create a convincing lookalike domain
Step 2
What happened next was calculated: They submit invoices for legitimate-sounding goods or services to the victim company's accounts payable
Step 3
The pressure escalated quickly: Payments are made to fraudulent accounts, sometimes recurring for months before detection
The outcome
Paul realized something was wrong when invoice from a new supplier that was not onboarded through normal procurement processes. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify all new suppliers through independent research and phone confirmation before making any payments Paul's experience shows why invoice from a new supplier that was not onboarded through normal procurement processes and supplier's email domain is slightly different from the legitimate company's domain are the clearest early warning signs.
How to identify it
- Invoice from a new supplier that was not onboarded through normal procurement processes
- Supplier's email domain is slightly different from the legitimate company's domain
- Invoice formatting or payment terms differ from the supplier's usual pattern
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify all new suppliers through independent research and phone confirmation before making any payments
- ✓Require purchase orders for all invoices and match them against actual receipts of goods or services
- ✓Report suspected supplier fraud to law enforcement and notify the real supplier if their identity was used
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The Association of Certified Fraud Examiners reports that billing schemes are one of the most common forms of occupational fraud globally
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify all new suppliers through independent research and phone confirmation before making any payments
- ✓Require purchase orders for all invoices and match them against actual receipts of goods or services
- ✓Report suspected supplier fraud to law enforcement and notify the real supplier if their identity was used
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The Association of Certified Fraud Examiners reports that billing schemes are one of the most common forms of occupational fraud globally
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. Global has dedicated agencies that handle fraud reports.
Report cross-border scams
econsumer.gov (ICPEN)
International Consumer Protection and Enforcement Network portal for reporting cross-border online scams. Reports are shared with consumer protection agencies in 40+ countries.
Interpol financial crime guidance
Interpol
International policing guidance on online financial fraud, romance scams, and investment fraud operating across borders.
Report phishing emails
Anti-Phishing Working Group
Global industry coalition for reporting phishing emails and URLs. Forward phishing to [email protected].
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Procurement teams, Accounts payable teams, Small business owners
Geographic concentration
Global
Primary channel
Email — Business email compromise
Why this group is vulnerable
Procurement teams are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The Association of Certified Fraud Examiners reports that billing schemes are one of the most common forms of occupational fraud globally
Source notes
- OpenScam research
Frequently asked questions
Common questions about supplier impersonation payment fraud
How does the supplier impersonation payment fraud work?+
Scammers compromise a supplier's email or create a convincing lookalike domain They submit invoices for legitimate-sounding goods or services to the victim company's accounts payable Payments are made to fraudulent accounts, sometimes recurring for months before detection
What are the warning signs of supplier impersonation payment fraud?+
Invoice from a new supplier that was not onboarded through normal procurement processes Supplier's email domain is slightly different from the legitimate company's domain Invoice formatting or payment terms differ from the supplier's usual pattern
What should I do if I encounter supplier impersonation payment fraud?+
Verify all new suppliers through independent research and phone confirmation before making any payments Require purchase orders for all invoices and match them against actual receipts of goods or services Report suspected supplier fraud to law enforcement and notify the real supplier if their identity was used
Who is most at risk for supplier impersonation payment fraud?+
This scam primarily targets Procurement teams, Accounts payable teams, Small business owners. It is most commonly reported in Global and typically appears on Email.
Is supplier impersonation payment fraud still active?+
supplier impersonation payment fraud is currently on our watch list. It has been reported across US, UK, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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