BUSINESS FRAUD

Business Email Compromise UK — How Fake Invoices Cost Companies Millions

Updated July 2026 · 6 min read · By Silent Erase | ICO Registered C1971457

Business Email Compromise (BEC) is one of the costliest categories of fraud facing UK companies of every size. It typically involves a fraudster impersonating a genuine supplier, executive, or colleague by email, to redirect a real payment to a fraudulent account.

The core defence:
Never change payment details for a supplier or make a large payment based on an email request alone — always verify by phone, using a number you already have on file, not one provided in the email.

Common BEC Scenarios

Fake supplier invoice: a genuine-looking invoice arrives with subtly altered bank details, sometimes following a genuine email thread the fraudster has been silently monitoring.

CEO fraud: an email appearing to come from a senior executive urgently requests a payment or gift card purchase, exploiting hierarchy to discourage questioning.

Compromised email account: a genuine business email account is hacked and used to send fraudulent payment requests from within real conversation threads, making detection especially difficult.

How to Protect Your Business

Implement a verification policy requiring a phone call (to a known, independently verified number) before changing any payment details or processing an unusual payment request.

Use our free Companies House verification tool to confirm a supplier's registered details before large payments, particularly for new suppliers.

Enable multi-factor authentication on all business email accounts to reduce the risk of compromise.

Red Flags to Watch For

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Sudden change to supplier bank details — always verify by phone before actioning
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Urgency combined with secrecy — "don't mention this to anyone yet" is a major warning sign
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Slightly altered email domain — check carefully for subtle misspellings
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Request to bypass normal approval processes — a deliberate attempt to avoid scrutiny

What To Do If This Has Happened To You

If a fraudulent payment has been made, contact your bank immediately — faster reporting significantly improves recovery chances. Report it to Report Fraud at reportfraud.police.uk (Action Fraud is now Report Fraud, following the December 2025 rebrand).

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