A realistic-looking invoice arrives by email.

It appears to be overdue.

Someone in your office recognizes the company name, assumes another employee ordered the service, and pays it.

There is just one problem:

Nobody ordered anything.

Fake invoices are one of the scams the Federal Trade Commission warns small businesses about. Scammers may bill businesses for products or services they never purchased, sometimes using familiar company names or adding “past due” language to create urgency. Some fake invoice emails are also phishing attempts designed to obtain access to business systems or information.

Protect your business with a few simple procedures

Make sure employees know:

• Who is authorized to approve purchases.
• Who can approve vendor changes.
• How unexpected invoices should be verified.
• Never to change payment information based solely on an email request.
• To be cautious about unexpected links and attachments.

The FTC also recommends carefully checking invoices and being especially cautious when someone demands payment through unusual methods such as gift cards, cryptocurrency, or wire transfers.

One additional safeguard is simple:

When a vendor unexpectedly asks you to change banking information, verify the request using a phone number or contact method you already know—not the contact information contained in the request.

A two-minute verification could prevent a very expensive mistake.

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Under U.S. Treasury regulations, any tax advice in this communication is not intended or written to be used to avoid IRS penalties. Tzinberg & Associates provides this information for general guidance only. It does not constitute tax advice, accounting services, investment advice, or professional consulting. Consult a professional adviser before making decisions or taking action, as the information is provided "as is" without any warranties regarding its completeness, accuracy, or timeliness.