Invoice fraud is on the rise, and even invoices that look polished and professional can be completely fake. The best defense is a combination of awareness, clear processes, and automated checks that help finance teams detect risks before money leaves the company.
Below are some of the most common invoice fraud tactics — and the red flags that signal something might be wrong.
Common invoice fraud tactics every finance team should recognize
- Unknown or unverified supplier — If the vendor is new, unfamiliar, or not properly validated, the risk increases significantly.
- Bank account mismatch — A changed or unfamiliar bank account number may indicate an attempt to redirect the payment..
- Urgency and pressure — Phrases like “pay today” or “urgent payment” are classic manipulation techniques used by fraudsters.
- Unusual formatting or tone — An invoice that looks different from previous ones (logos, wording, file format) should raise suspicion.
- Suspicious similarity — Identical amounts, dates, or descriptions may indicate duplicate submission or an automated scam attempt.
If something feels off, stop the process, validate the supplier, and double-check internally before approving the invoice or payment.
These warning signs highlight why structured, consistent procurement and accounts payable processes are essential for preventing fraud.
A real example: The “Advisory Legal Exec” Scam
In recent months, companies across Europe — including in Estonia — have received nearly identical invoices from a non-existent firm called “Advisory Legal Exec.”
The invoices looked credible: professional layout, detailed service descriptions, and even what appeared to be a valid registration number. They were addressed directly to companies and referenced board members to create a false sense of legitimacy. There was only one issue: the company does not exist.
This case perfectly illustrates why systematic supplier validation is crucial. Checking the supplier’s legal existence, registration data, bank account, and contact details before approving an invoice allowed many companies to detect the scam early and avoid paying it.
A polished design doesn’t make an invoice real — a transparent and consistent validation process does.
How Telema eFlow helps prevent the most common invoice fraud scenarios
- Unknown or unverified supplier – eFlow automatically validates supplier information by comparing invoice data to your master records. If the supplier is new or the details don’t match, eFlow flags it immediately — one of the most important early fraud indicators.
- Bank account mismatch – Any change in IBAN or supplier banking data is detected automatically. Fraudsters cannot slip in a “new account” unnoticed.
- Urgency and pressure – eFlow reduces human error caused by time pressure.
Structured approval workflows ensure that no invoice moves forward without the required checks — even if someone tries to push for a “pay now” decision.
eFlow also compares the invoice’s due date with the supplier’s usual terms. Unusually short or urgent deadlines are flagged instantly. - Unusual formatting or tone – eFlow focuses on data, not design.
Because the system validates supplier name, registration data, bank account and other key fields, the visual appearance of the invoice cannot disguise inconsistencies. - Suspicious similarity to previous invoices – eFlow detects duplicate invoices, repeated numbers, and recurring patterns automatically. Users get full visibility into all previous invoices from the supplier, making it easy to identify duplicates or abnormal trends.
Telema eFlow transforms invoice handling into a structured, transparent, and secure process — far beyond manual checks or gut feelings.
With these automated safeguards in place, scams like the “Advisory Legal Exec” scheme can be caught long before payments are approved.
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