Is your small business avoiding invoicing scams?

Cashmanager | 6 years ago

Data security is a priority no matter the size of your business. If a nefarious party gets their hands on financial information in particular, then the implications are huge. While looking after sensitive information may seem like a chore, it's an absolute must as more scammers are going after small businesses than ever before.

Most recently, the Commerce Commission has pointed out one example of a false website looking to gain information regarding companies' invoicing practice​s. The scam is the work of a German entity that hides under the name 'Corporate Portal New Zealand'.

"We have received a number of complaints about the Corporate Portal and similar scams. It is a priority for us to protect consumers from scams," said the Commerce Commission's general manager of competition, Kate Morrison.

How it works

In short, the scam is centred on getting small businesses signed up for a subscription which is then particularly difficult to revoke or alter. 

"The letter gives business owners the impression the 'service' is free, that the business is already listed and that their details need updating. In reality, filling out the form and posting back the business details signs them up to a $1,411 annual subscription to a basic online directory, for at least three years," Ms Morrison explained.

Staying safe

Ultimately, keeping company finances safe is of the highest priority. Using CashManager from Accomplish and the accompanying invoicing module gives you an up-to-date rundown of the company's incomings and outgoings, making it easy to spot when anything is awry.

There are a number of other tips to follow, in line with the advice of both the Commerce Commission and the Ministry of Business, Innovation and Employment:

  • Keep written (or digitise) records of orders
  • Reconcile invoices against specific orders
  • Engage in business with those you know and trust
  • Keep the number of people who can invoice purchases down to a minimum

The integrity of company finances simply has to be taken seriously. While there'll always be those who are looking to take advantage, prevention will typically be better than the cure.