Invoice fraud is getting smarter. Here’s how to protect your business.
For many businesses, paying vendors is just a part of the day-to-day in running a business. It’s often done manually and frequently in batches. Human error can happen. Oversights exist. Unfortunately, criminals know that.
What makes these scams so effective is that they often look legitimate. A trusted supplier sends an invoice. A familiar contact requests updated payment instructions. An email appears to continue a previous conversation. Increasingly, they are targeting accounts payable teams with sophisticated invoice and vendor impersonation scams designed to blend in with normal operations, making them one of the most common forms of payment fraud affecting businesses today.
How the scam works
In a typical scheme, a fraudster poses as a legitimate vendor and requests that future payments be sent to a new account. In other cases, they submit a fake invoice that closely resembles a real one. Some criminals even compromise email accounts and insert themselves into ongoing vendor communications.
Their goal is simple: redirect funds before anyone notices.
Why this matters now
According to a 2026 fraud trends report, invoice fraud was the most commonly reported payment fraud scheme, affecting 58% of organizations surveyed.1 Nearly one-third also reported experiencing vendor or supplier fraud as criminals employ increasingly sophisticated tactics to imitate trusted vendors and manipulate routine payment processes.
Warning signs to watch for
While these scams have become more sophisticated, common red flags still exist, including:
- Requests to change wire or ACH instructions
- Unexpected invoices or payment changes
- Urgent requests that demand immediate action
- Slight changes to vendor email addresses
- Unusual invoice amounts or timing that doesn’t match historic patterns
How to reduce your risk
Strong processes remain one of the best defenses. Consider these best practices:
- Verify payment changes through a known phone number
- Require dual approval for payment instruction updates
- Match invoices to purchase orders and contracts
- Train employees to recognize social engineering tactics
- Review vendor records regularly for unauthorized changes
Even a small discrepancy deserves a second look.
How your bank can help
Protecting your business is a shared effort. Many banks, including Columbia, offer treasury management and fraud prevention solutions designed to help reduce payment risk and strengthen internal processes.
Tools such as Positive Pay, Payee Positive Pay, ACH Positive Pay and ACH Block help detect suspicious activity and prevent unauthorized transactions before funds leave your account. Combined with account monitoring, security controls and guidance from experienced treasury management professionals, these solutions can help create a stronger defense against evolving fraud threats.
By combining employee awareness, strong verification procedures and the right banking tools, your business can reduce risk, protect its accounts and stop suspicious activity before it becomes a costly problem.
To learn more, contact Columbia Bank’s Treasury Management Team at 866-563-1010.
1 https://trustpair.com/blog/2026-fraud-trends/
