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 fraud tactics and the warning signs that may indicate something is wrong.
Red flags in invoice fraud
- Unknown or unverified supplier — A vendor who is new, unfamiliar, or not properly validated significantly increases the risk.
- Bank account mismatch — A changed or unexpected bank account number may signal an attempt to divert funds.
- Urgency and pressure — Requests marked “urgent” or insisting on same-day payment are classic tactics used to push decisions without proper checks.
- Unusual formatting or tone — An invoice that differs from previous ones in layout, logos, wording, or file type warrants a closer look.
- Suspicious similarity — Identical amounts, dates, or descriptions can indicate a duplicate request or an automated scam.
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
Recently, businesses across Europe — Estonia among them — have been hit with identical fake invoices from a phantom company calling itself 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 illustrates why systematic supplier validation is crucial. The practice of 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 – Telema eFlow automatically checks each invoice against your master data. If the supplier is new, unregistered, or the details don’t match, the system flags it immediately — one of the strongest early indicators of potential fraud.
- Bank account mismatch – Any change in IBAN or supplier banking details is detected automatically. A fraudster cannot introduce a “new account” without triggering an alert.
- Urgency and pressure – eFlow minimizes errors caused by time pressure. Structured approval workflows ensure that no invoice progresses without the required checks, even if someone pushes for a quick “just pay it” decision. The system also compares the invoice due date to the supplier’s typical terms, flagging unusually short or urgent deadlines.
- Unusual formatting or tone – eFlow validates data, not design. Since the system verifies the supplier’s name, registration details, bank account, and other key fields, a visually convincing invoice cannot mask inconsistencies in the underlying information.
- Suspicious similarity to previous invoices – eFlow automatically detects duplicates, repeated invoice numbers, and unusual patterns. Users have full visibility into the supplier’s invoice history, making it easy to spot duplicates or deviations from normal behaviour.
Telema eFlow turns invoice handling into a structured, transparent, and secure process — far beyond what manual checks can provide. With these automated safeguards, schemes like the “Advisory Legal Exec” scam can be identified long before any payment is released.
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