NSW-based invoice scammer fined $8000
Posted by editor (editor) on Dec 29 2009
2009 >>

A New South Wales-based company has been fined $8000 in the Beaudesert Magistrates Court (23/12/09) for running a false billing scam which involved sending invoices for advertising to small businesses requesting payments.

Minister for Fair Trading Peter Lawlor said the Bondi-based Pacific Publishing Group had contacted a small business owner in February this year requesting payment for an advertisement which allegedly ran in a magazine called Australian Small Business Journal.

“The payment request for the advertisement failed to clearly indicate that the offer was only a solicitation, and instead gave the appearance of a debt which needed to be paid,” Mr Lawlor said.

“This type of invoice fraud - often referred to as false billing - can be a serious threat to small businesses that are often extremely busy and can be tricked into paying for advertising they never ordered.

“People who commit invoice fraud are often very clever. Their invoices look genuine and they often present a ‘product’ that either seems worthy or connected to your industry.

“This fine serves as a warning to traders who think this kind of dishonest behaviour might be worth trying, and also highlights to small businesses the need to be on guard against these schemes.

Mr Lawlor said he encouraged small business owners to ensure they had strong payment protocols in place to prevent unnecessary invoices being paid for.

“The hectic nature of small businesses often means that payments are pushed through by administration staff without management approval,” he said.

“This type of scam is often targeted at tradespeople, earthmoving contractors, veterinary clinics and law practices.“

Mr Lawlor said it was vital small businesses were on guard against fraudsters who:

- Harassed staff for a quick payment;
- Refused to provide documentary evidence of a booking form or copy of the ad; or
- Claimed that someone else in the office had approved the payment.

“Don’t let your business fall victim to invoice scammers,” he said.

“If you think someone is trying to scam you, I urge you to report it to the Office of Fair Trading on 13 13 04.”

Further information on invoice fraud and other scams is available online at www.fairtrading.qld.gov.au.

Last changed: Jan 07 2010 at 2:27 PM