The UK’s National Crime Agency (NCA) has initiated a collaborative effort with the National Federation of Builders (NFB) to raise awareness of the surging problem of invoice fraud within the construction industry. This partnership underscores an urgent call to action for financial personnel within this sector, who are often the primary targets of these deceptive schemes.
The awareness campaign, focusing on accounts payable and finance staff, aims to equip them with the knowledge needed to recognize and combat the increasing incidence of invoice fraud. The NCA has presented alarming statistics from the Report Fraud initiative, which reported that victims lost close to £4 million ($5.3 million) due to these fraudulent activities in September 2025 alone. A total of 83 distinct cases were recorded during that period. Furthermore, an independent analysis from the Fraud Reporting Center revealed that in the fiscal year 2024-25, construction and manufacturing sectors accounted for a staggering 25% of all invoice fraud incidents, far surpassing other industries.
The construction industry is particularly vulnerable to these scams, primarily due to its intricate network of contractors, subcontractors, consultants, and various suppliers. High-value transactions are often processed via relatively insecure email channels, making it easier for fraudsters to exploit weaknesses in the system. The NCA has highlighted these vulnerabilities, emphasizing that invoice fraud is typically executed through a method known as business email compromise (BEC). In these scams, fraudsters pose as legitimate suppliers and manipulate payment details within fabricated invoices, directing funds to their accounts instead.
In some instances, scammers resort to hijacking the email accounts of suppliers to gain crucial intelligence about invoicing patterns, including what genuine invoices appear like and their typical issuance timelines. This practice significantly enhances their chances of successfully pilfering funds. Additionally, sender domains may be spoofed, or legitimate supplier emails may be hacked, enabling the circulation of these counterfeit invoices.
Nick Sharp, deputy director of fraud at the NCA’s National Economic Crime Centre (NECC), has articulated the devastating impacts of invoice fraud on businesses. “A loss of cash flow due to fraudulent payments can obliterate companies, while the livelihoods of families are jeopardized if fraudsters prevail. By disseminating accurate information to individuals positioned to disrupt these criminal tactics, we can effectively thwart the most egregious instances of invoice fraud,” Sharp remarked.
In line with this proactive stance, the NCA is not only committed to disrupting the criminal networks orchestrating these scams through investigations and intelligence-sharing efforts with international partners but also emphasizes the critical importance of preventive measures.
Three Steps to Combat Invoice Fraud
The NCA has issued three pivotal recommendations aimed at finance professionals in the construction sector, encouraging them to take immediate steps to safeguard their businesses against invoice fraud:
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Scrutinize Changes to Invoice Details: Finance teams should verify any alterations to invoice information, particularly bank details, especially when the sender pressures for prompt payment.
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Confirm Invoices with Genuine Suppliers: It is advisable to verify the authenticity of invoices by contacting the legitimate supplier before executing any financial transfers, given that emails can easily be intercepted by fraudsters.
- Double-Check Payment Details: Financial staff should refrain from transferring funds until all details have been thoroughly reviewed and confirmed as accurate.
Beyond these practices, the NCA encourages finance professionals within the construction industry to remain vigilant for any changes in supplier email addresses and to be on the lookout for odd language, spelling, or grammar that might signal deceit. Furthermore, it is suggested that high-value transactions should only be authorized after corroborating with a colleague to mitigate risks.
To fortify their defenses, construction firms are advised to secure their IT systems through best practices, including comprehensive password management, implementing multi-factor authentication (MFA), and maintaining updated anti-malware solutions.
It is essential to recognize that invoice fraud is not confined to the construction industry alone; comprehensive reports from the FBI indicate that business email compromise scams collectively resulted in costs nearing $2.8 billion in 2024, marking it as the second most lucrative cybercrime category.
As the frequency of such fraudulent activities continues to escalate, keeping the construction sector informed and vigilant becomes paramount in the collective fight against invoice fraud. Through collaboration and heightened awareness, organizations can better protect their financial integrity and safeguard their operations from these insidious threats.