$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
vendor invoice spoofing scam
Scammers impersonate a company's existing vendor and send a fake invoice with updated banking details, diverting legitimate payments to a fraudulent account.
“invoice scam”
↑ 2%Key indicators
Usually targetsSmall business owners
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers research a company's vendors through social engineering, LinkedIn, or compromised email accounts.
2
They send a convincing invoice from a spoofed email address requesting payment to updated bank details.
3
The payment is wired to the scammer's account and quickly moved offshore, making recovery difficult.
What to do first
Always verify banking detail changes by calling the vendor directly using a phone number from your records — not from the email.
Related terms
vendor impersonation invoicepayment redirect scamBEC invoice fraudFake invoice scamsEmailStableSmall business ownersAccounts payable teamsStartupsFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesUnited KingdomCanadavendor impersonation invoicepayment redirect scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Ashley, 45, a small business owners, encountered what appeared to be a legitimate fake invoice scams situation while using Email. Scammers research a company's vendors through social engineering, LinkedIn, or compromised email accounts.
Step 2
What happened next was calculated: They send a convincing invoice from a spoofed email address requesting payment to updated bank details.
Step 3
The pressure escalated quickly: The payment is wired to the scammer's account and quickly moved offshore, making recovery difficult.
The outcome
Ashley realized something was wrong when a trusted vendor suddenly requests payment to new bank account details via email. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Always verify banking detail changes by calling the vendor directly using a phone number from your records — not from the email. Ashley's experience shows why a trusted vendor suddenly requests payment to new bank account details via email and the email comes from a domain that is slightly different from the vendor's real domain are the clearest early warning signs.
How to identify it
- A trusted vendor suddenly requests payment to new bank account details via email
- The email comes from a domain that is slightly different from the vendor's real domain
- The invoice urgently requests payment before a specific deadline
- 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
- ✓Always verify banking detail changes by calling the vendor directly using a phone number from your records — not from the email.
- ✓Implement dual-approval processes for payments above a certain threshold.
- ✓Report suspected vendor invoice fraud to the FBI IC3 and your bank immediately to attempt wire recall.
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 FBI IC3 reported that business email compromise, including vendor invoice fraud, resulted in over 2.9 billion USD in losses in 2023.
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.
- ✓Always verify banking detail changes by calling the vendor directly using a phone number from your records — not from the email.
- ✓Implement dual-approval processes for payments above a certain threshold.
- ✓Report suspected vendor invoice fraud to the FBI IC3 and your bank immediately to attempt wire recall.
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 FBI IC3 reported that business email compromise, including vendor invoice fraud, resulted in over 2.9 billion USD in losses in 2023.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Small business owners, Accounts payable teams, Startups
Geographic concentration
United States, United Kingdom, Canada, Australia
Primary channel
Email — Fake invoice scams
Why this group is vulnerable
Small business owners 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 FBI IC3 reported that business email compromise, including vendor invoice fraud, resulted in over 2.9 billion USD in losses in 2023.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about vendor invoice spoofing scam
How does the vendor invoice spoofing scam work?+
Scammers research a company's vendors through social engineering, LinkedIn, or compromised email accounts. They send a convincing invoice from a spoofed email address requesting payment to updated bank details. The payment is wired to the scammer's account and quickly moved offshore, making recovery difficult.
What are the warning signs of vendor invoice spoofing scam?+
A trusted vendor suddenly requests payment to new bank account details via email The email comes from a domain that is slightly different from the vendor's real domain The invoice urgently requests payment before a specific deadline
What should I do if I encounter vendor invoice spoofing scam?+
Always verify banking detail changes by calling the vendor directly using a phone number from your records — not from the email. Implement dual-approval processes for payments above a certain threshold. Report suspected vendor invoice fraud to the FBI IC3 and your bank immediately to attempt wire recall.
Who is most at risk for vendor invoice spoofing scam?+
This scam primarily targets Small business owners, Accounts payable teams, Startups. It is most commonly reported in United States, United Kingdom, Canada, Australia and typically appears on Email.
Is vendor invoice spoofing scam still active?+
vendor invoice spoofing scam is currently on our watch list. It has been reported across US, UK, CA, 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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