False billing refers to scams that ask you or your business to pay a fraudulent invoice for marketing,  directory listings, domain services or supplies that you never actually ordered.

One of the most common forms of billing schemes is run behind the facade of a shell company, which is a fake entity set up exclusively for anonymity. As a result, it is extremely challenging to track down funds going into and out of their accounts. You can monitor for shell company schemes by organising payments by vendor, invoice number, amount and physical address. This sorting will help to highlight any red flags, such as a lack of detail on invoices.

Another type of false billing depends on the modification or duplicate payment of a seller’s invoice. In this case, the scammer sends a fake invoice in the name of a legitimate vendor, who likely has no idea that this crime is occurring. To identify this fraud, compare mailing addresses or electronic payments information with your records for vendors and search for duplicate payments.

A third kind of false billing involves buying personal goods or services with the  company credit card. This scam can be spotted by comparing credit card statements with employee expenses, keeping an eye on card expenses for an unexplained increase and identifying connections between certain purchases and specific cardholders at the time.

A false billing scheme usually has three key components:

1. A fictitious entity, such as a shell company, is created to receive payments. 
2. A false invoice is generated or a legitimate invoice is altered for payment.
3. The payments system is manipulated so that the false invoice is approved and the funds are transferred. 

As the above steps can take all kinds of forms, it is important to be aware of the various red flags of false billing fraud.

The warning signs of false billing include:

• An invoice or phone call confirming your listing or promotion from a business directory or other organisation that you do not know.
• An invoice for a domain registration or renewal. This fee may be unusually high or registered with a different provider, whose name may be similar to your current provider’s. 
• An invoice for goods or services that you have not ordered.
• A free gift offered to your staff by an organisation that you’ve never heard of. This gift may be delivered along with other items that your team member did not order.

If any of these red flags sounds familiar, you may have been targeted by a false billing scheme. Please contact Quantum Asset Trace to arrange an investigation today.

There are several steps you can take to protect yourself against a false billing scheme:

• Always request a business proposal in writing. Do not agree to any dealings over the phone.
• Before paying for an invoice, ensure that any goods or services have been both ordered and delivered. Don’t forget to read the fine print properly.
• Minimise the number of staff members who are permitted to make orders or pay invoices. 
• Never pay for a directory entry that you did not authorise, and always receive proof of your listing before paying an invoice.
• If it comes to your attention that a supplier’s bank account details have been updated, call them to confirm these changes before paying any of their invoices.

If you suspect that you have been targeted by medical billing fraud, please follow the below measures immediately:

• Notify your financial institution(s) of the scam immediately so that they can freeze your accounts and credit cards. 
• File a complaint with the Australian Securities & Investment Commission (ASIC), the organisation responsible for dealing with false billing scams in Australia.
• Report the scam to the ACCC’s Scamwatch.
• Report any stolen funds to your local police.

Last but certainly not least, contact IFW as soon as possible to book a consultation for your investigation.

False billing schemes tend to take between one and three months to investigate, but this is only a rough estimate. Ultimately, the duration of your investigation rests in the sophistication of the scheme and whether or not you intend to bring the scammer to Court. 

If the orchestrator behind the scheme is successfully tracked down, our investigators can work with law enforcement officials to help file search warrants and/or criminal charges. This is a complicated and time-consuming process that will likely extend the overall time frame.

The cost of a false billing scam investigation varies according to its complexity and scope, the amount of losses incurred, and the jurisdiction in which the scheme was executed.

Before launching into your investigation, our investigators will provide you with a personalised proposal that explains the advised budget to maximise the likelihood of a successful result.

The likelihood of a successful investigation depends on the exact circumstances of your case. The greater the actionable evidence our investigators gather, the higher the chances that you will be equipped to take legal action against the fraudster. 

To estimate the probability of hunting down the criminal who stole from you, we will perform a preliminary assessment of your case. Armed with our expert insight, you may decide whether or not to go ahead with the false billing scam investigation.