Invoice fraud is one of the most common and costly forms of financial crime affecting individuals, families and businesses- and construction is one of the most vulnerable industries
The National Crime Agency (NCA) and National Federation of Builders (NFB) have launched a joint campaign aimed at accounts payable professionals and finance personnel in the construction industry that highlights the risks of invoice fraud, a crime that costs businesses millions each year.
The construction industry is especially vulnerable to invoice fraud because it relies on complex supply chains often involving contractors, sub-contractors, consultants and suppliers, frequent high value payments and reliance on emails to communicate payment instructions which criminals can compromise.
Invoice fraud happens when criminals deceive individuals and businesses into paying fake invoices or diverting a genuine payment into accounts controlled by fraudsters. Fraudsters can impersonate suppliers, intercept emails or send convincing invoices to generate immediate payments into their own accounts. The aim is to manipulate victims into transferring funds to the fraudsters instead of their legitimate destination.
Figures released by Report Fraud reveal that in September 2025 alone, invoice fraud victims lost a total of £3,908,086 from 83 Report Fraud cases, averaging more than £47,000 per case. Invoice fraud accounted for 85% of all Payment Diversion Fraud losses in September 2025. In 24/25 Report Fraud analysis indicated that the two largest sectors impacted were construction and manufacturing (25%).
Practical guidance on identifying and preventing this fraud include:
- CHECK for any changes to invoice details, bank details or if you are being pressed for an urgent payment.
- VERIFY by calling the genuine supplier on a previously used phone number before you transfer money, as emails can be intercepted or diverted.
- NEVER transfer money until you are satisfied the details are correct.
The NCA and NFB have an info sheet on Invoice fraud which can be found here. The activity is co-branded with the Home Office’s national Stop! Think Fraud campaign.
Ensuring construction businesses are better able to prevent invoice fraud
Nick Sharp, deputy director of fraud at the National Economic Crime Centre (NECC) in the NCA, said: “Invoice fraud is one of the highest harm types of fraud experienced by victims and it has a huge impact on those who become a victim. Businesses can be destroyed by a loss of cashflow from a fraudulent payment, families and livelihoods are at serious risk of collapse if fraudsters are successful. By providing the correct information to those in a position to thwart the fraudsters’ efforts, we can stop the worst examples of invoice fraud in their tracks. That is why the NCA is actively targeting and disrupting the criminal networks behind invoice fraud through investigations and intelligence sharing with international partners. However, prevention remains equally as important as disruptions.
“This campaign is a vital part of our strategy – by raising awareness and strengthening defences within the construction sector, we can significantly reduce opportunities for criminals to succeed.”
James M Butcher, deputy chief executive, National Federation of Builders said: “The National Federation of Builders is delighted to be supporting this important campaign which plays a crucial role in helping our members protect themselves against invoice fraud.
“By promoting awareness and encouraging stronger safeguards, we can work together to reduce the risks faced by organisations and ensure they are better equipped to prevent financial harm. Collaboration and education are key to stopping fraudsters and we are proud to stand behind an initiative that helps strengthen resilience across the construction industry.”
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