Tax Time Alert: False Billing Scams Don’t get fooled by fake EOFY invoices

End of financial year is peak season for small business scams.

Tradies are busier than ever, prepping their tax returns and getting their normal work done. But while you’re focused on getting your finances in order, scammers hope that their emails, texts, and calls slip past your defences.

SEE MORE: Tradie Tough Tests

False billing was the most reported scam type for Australian small businesses in 2025. This popular scam is also costly, with losses over $5.7 million between May and July 2025.

Let’s dive into false billing scams and learn how tradies can help protect themselves this EOFY.

What are false billing scams?

False billing scams are a type of cybercrime known as social engineering. They occur when you receive an invoice from what seems like a trusted source. The invoice looks real. The sender’s name matches a supplier or service provider you work with. So, you pay it, only to later find out that the invoice was fake and the money is long gone.

Scammers use many tactics to trick small business owners, including:

Hacking into your email to learn how you do business and who you work with.
Calling your business to confirm contact details and other information about your business and suppliers.
Using real business logos, ABNs, and templates to create believable fake invoices.
Sending invoices from an email address that is almost identical to a real email address used by a supplier, service provider, or your bank.

False billing scams are already easy to fall for, and AI is making the problem worse. Scammers can now use AI to gather information, code cyberattacks, and generate fake emails and invoices. AI makes false billing and other scams faster, easier, and more convincing.

How to spot a false billing scam

Identifying a false billing scam is the first step to avoid falling for one. Before you pay any invoice, ask yourself these questions:

Is the payment request urgent or time-sensitive?
You receive an email demanding immediate payment for an overdue invoice. It might threaten to cancel a service your business relies on or warn of legal action if you don’t pay now.

Turns out, it’s actually scammers hoping a sense of urgency will get you to act without thinking.

Do the bank details match?

You get a call from a supplier advising that they have a new bank account. They ask you to update the payment details you have on file and use the new account when paying an upcoming invoice.

However, you’re really talking to a scammer who has likely hacked your email. They’ve found a real invoice and are trying to fool you into transferring money owed to your supplier to them instead.

Did you approve the service you’re being charged for?

You receive an invoice for a directory listing or domain name renewal. But you don’t remember ever signing up for these services.

You guessed it—it’s actually a fake invoice for a legit-sounding service.

Do the sender’s email address and website URL look right?

You get an email from a supplier asking for payment. At first glance, everything looks right. But when you look closer, the email address is misspelled.

This is email spoofing—creating an email address that is almost identical to a real one. Scammers may also use domain mimicking to create fake websites for real banks, suppliers, and service providers.

How tradies can avoid the false billing trap

Double checking the invoices that you receive is an easy way to avoid false billing scams. Simply taking time to verify the sender, payment details, and email address could help you avoid paying money to online thieves.

But, always remember to contact suppliers and service providers using the details you already have on file for them. Scammers may encourage you to call a fake number they’ve provided or reply to the email they’ve sent to keep you from discovering the scam.

A safety net for tradies

Cyber Liability insurance can also provide an extra layer of protection for busy tradies. It helps protect you from claims and supports your profitability after a cyberattack or data breach, including costs associated with defending a cyber claim. You can also add optional cover for Social Engineering, which includes false billing scams.

A Cyber Liability policy can provide peace of mind if you do fall for false billing and other common online scams. It can help cover things like the money lost in the scam, an investigation to determine if your email system was hacked, and IT help to remove the scammers from your system.

Ready to add Cyber Liability insurance to your cover toolbox? BizCover has got you covered. Compare policies online and buy in minutes, with no added stress or hassle this tax season. For on the go cover, go BizCover or call 1300 805 821 today!