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Fraud and risk

Supplier impersonation

Fraud in which a criminal poses as a known supplier, by email, letter or altered invoice, to redirect payment or extract sensitive account information.

Full explanation

Supplier impersonation is fraud in which a criminal poses as a known supplier, by email, letter or an altered invoice, to redirect payment or extract sensitive account information. It relies on the existing trust between a buyer and a supplier rather than breaking into any system.

The impersonation can be crude or sophisticated, from a lookalike email domain to a faithful copy of a real supplier's invoice template. What makes it effective is context: the buyer is expecting an invoice from this supplier, so a fraudulent one does not raise suspicion.

Confirming the supplier's identity and bank details independently, rather than from the contact details on the suspicious message, is what breaks the deception.