Invoice Fraud Prevention: How Data Sharing Protects Your Business

Invoice Fraud Prevention

Diverting Vendor Payments – a Growing and Highly Lucrative Threat to Every Company

You receive an email with an invoice from a supplier. The email looks unsuspicious, the attached PDF like the vendor's other invoices. The only difference: the email asks you to wire money to a new bank account number. Ever thought about if this could be fraud? What if that one data field with the bank account number is compromised, leading you to pay millions to criminals?

Invoice fraud is real and growing, as some recent cases show:

Share the risk of invoice fraud – join the CDQ Data Sharing Community!

Do you go through labor-intensive checking procedures before you allow a payment to go to an unverified destination? Why not join the CDQ Data Sharing Community and share the burden of bank account verification with other companies! Here is how invoice fraud prevention works in three easy steps:

Tips on how to avoid invoice fraud in a company

1. CDQ's Data Sharing Community has established quality rules and processes – how do leading companies determine if a bank account number is legitimate? Benefit from "crowd wisdom".

2. CDQ calculates a Trust Score for bank account information based on the rules – a higher score indicates several companies using the same bank account for a shared vendor, for example.

3. In case of an active fraud, CDQ immediately alerts all Community Members sharing the same vendor. Through our cloud platform, all Community Members maintain a shared blacklist.

Invoice Fraud Prevention

Invoice fraud with manipulated bank account data is a threat to every business. To protect themselves effectively against fraud attempts, members of the data sharing community have access to an app for quick and straightforward verification of the trustworthiness of bank details.

Learn more about the capabilities of our app and how you can reliably protect your company against invoice fraud.

BASF is using Data Sharing to fight invoice fraud

Philippe Baumlin

“Sharing proven bank account data saves significant time, compared to contacting the customers/vendors directly to verify new bank accounts. "Data Shareconomy" like the CDQ Data Sharing Community is an effective approach to unlock this source of trusted information.”

Philippe Baumlin, Manager of Global Master Data Strategy, BASF

That's why we believe Data Sharing is the best way to safer data!

Get in touch with us!

Some tips from the CDQ Community on how you can avoid invoice fraud:

  • Allow changes to bank accounts only following a four-eye principle
    The review of new or changed payment data should always be done by at least two people in order to reduce the risk of a social engineering attack and to increase overall attention.
  • Open communication with colleagues and supervisors in case of suspected fraud
    If there is a suspected case of invoice fraud, supervisors should be alerted immediately in order to take appropriate action. In order to reduce the fear of negative consequences if damages have already occurred, the company should establish an appropriate reporting system. A good system allows for a sanction-free identification of possible errors and their root causes (for example, CIRS)
  • Always validate new or changed bank details before using them
    Today, fraudsters are increasingly deploying social engineering methods to learn the customs and habits of individual employees in your company. Also, invoice forgeries are getting better and better thanks to increasingly powerful software; now even experts find it difficult to identify them as fake. The only solution: check back with the sender
  • Share the burden of verification
    If you dread the manual effort of checking back with senders yourself, join the CDQ Data Sharing Community. There, experts tackle the validation of bank data together, providing additional security and distributing the effort among peers
  • Introduction of an invoice fraud warning system
    Implement a company-wide or cross-company blacklist to alert all involved parties in the event of an active fraud attempt. One possibility: You can use the CDQ Blacklist also within your company

Contact us to learn more about invoice fraud prevention with our Data Sharing Community

Our Fraud Prevention Expert

David Giesinger
Working Group Lead Fraud Prevention

"Invoice fraud is a growing threat to businesses. In our Data Sharing Community, we use our cloud platform to rate bank accounts' trustworthiness and alert our members to new fraud attempts."

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
5 + 2 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Data Quality Tools

CDQ's cloud-based Data Quality Tools enable fast and reliable analyses, validation and enrichment of your business partner master data. Request your personal demo now! Data Quality Tools for better business partner data

Data Sharing Community

Better quality, less manual efforts through Data Sharing: Our Data Sharing Community helps companies improve their business partner data together, share the burden of data maintenance, and reliably protect all participants against invoice fraud. Want to know more? CDQ Data Sharing Community

Go to top