Prevent Business Payment Fraud: Verify Before You Pay a New Supplier

Learning to prevent business payment fraud starts before any money leaves your account, especially when a supplier is new or bank details have just changed. A payment that looks routine can still be a trick, so a short pause to check the request can protect cash you need.

Fraudsters often copy real invoices, change one detail, and rely on a busy team paying quickly. A calm, written routine makes that pressure much less effective for everyone involved.

Why a routine helps you prevent business payment fraud

A routine removes guesswork. Instead of each person deciding how careful to be, the whole team follows the same steps for every new payee and every change to existing bank details. That consistency is what helps you prevent business payment fraud over time, not just once.

Keep the routine short enough to use on a busy day. If a check takes only a few minutes, staff will actually do it. Write the steps down and review them when staff change.

Good records matter too. Note who requested the payment, who checked it, and who approved it. Clear records support the same discipline described in our guide to preventing employee cash theft, where separation of duties and simple logs reduce mistakes and misuse.

The new-payee verification call-back routine

Use this call-back routine every time you set up a new supplier or change bank details for an existing one. It is the single most useful habit if you want to prevent business payment fraud in a small, practical team.

• Step 1: Stop. Do not pay from the email, invoice or message that supplied the new details.
• Step 2: Find a phone number from an independent source, such as an earlier invoice, a signed contract, or the supplier’s official website.
• Step 3: Call that number and ask the supplier to confirm the account name, bank name and the change itself, out loud.
• Step 4: Ask a second team member to repeat the check for larger payments, and record both names and the time of the call.
• Step 5: Only then set up the payee, and consider a small first payment or a waiting period before sending a large amount.

Never use a phone number printed on the suspicious invoice itself, because a fraudster controls that document. The Consumer Financial Protection Bureau offers general guidance on spotting scams. Ask your bank about its payee confirmation tools too.

Red flags that should slow any payment down

Treat the signs below as a reason to pause, not as proof of a crime. Genuine suppliers will normally understand a short delay for checks, and a team trained to prevent business payment fraud will expect these questions rather than resent them.

• Bank details change suddenly, with urgency and a request for secrecy.
• The email address looks almost right, but one letter or the domain ending differs.
• The invoice has no purchase order, vague descriptions, or a round, unusually large amount.
• The sender refuses a call, or insists you use a new number supplied in the same message.
• Payment is asked to a personal account, a different country, or a name that does not match the supplier.
• A senior person’s request arrives out of hours and asks you to skip normal approval.

If two or more flags appear together, escalate to the owner or manager before paying. This pause is a core part of how you prevent business payment fraud, not a sign of mistrust. It also helps to review routine costs regularly, as our article on how to reduce bank fees shows how a monthly review habit surfaces charges and payments you did not expect.

What to do if you think a payment was fraudulent

Act quickly and calmly. Contact your bank straight away and explain that you suspect fraud, because a faster report gives the bank a better chance to act. Keep the invoice, emails and call notes together, and do not delete anything that might help an investigation.

Tell the real supplier using a trusted contact route, warn colleagues so a second payment is not sent, and change any passwords that may have been shared. Then review where the routine broke down and fix that gap, so the same attempt cannot succeed twice. Share the warning with everyone who makes payments, so the whole team continues to prevent business payment fraud together.

Watch the short video below for a practical guide to verifying new supplier payments before you send money.

Frequently Asked Questions

Should we verify every new supplier, even for small amounts?

Yes. Small test payments are a common way to check whether a trick works. Apply the same call-back routine to every new payee, whatever the amount, and the habit will protect larger payments too. That consistency is how small teams prevent business payment fraud day after day.

What if a supplier says the change is urgent?

Urgency is a reason to check more carefully, not less. Use an independently found number, make the call, and explain that your policy requires it for everyone. A genuine supplier will usually accept a short, explained delay.

Who should make the verification call?

Ideally someone other than the person who entered the payment. A second pair of eyes makes it harder for one convincing message to push a payment through, and it creates a clearer approval record.

Can software stop payment fraud on its own?

Tools can flag unusual payments, but they cannot replace a human call-back check. Combine bank alerts and approval limits with the routine above.

Conclusion

A short call-back routine, a clear red-flag list, and a second person on larger payments will prevent business payment fraud far more reliably than trust and speed alone. If you would like help reviewing how your business handles supplier payments and everyday cash controls, contact BCC Financial for friendly, practical support tailored to your business.

Disclaimer: This article is general educational information only and is not personal financial, legal or security advice for your specific situation. Rules, bank tools and risks change over time, so check current guidance from your bank and qualified advisers before acting.