London: The UK’s National Crime Agency (NCA) has joined forces with the National Federation of Builders (NFB) to warn construction companies about growing invoice fraud risks. The campaign targets accounts payable and finance staff because fraudsters often target these employees.

Figures from Report Fraud show that invoice scams cost victims almost £4 million ($5.3 million) in September 2025 alone. Authorities recorded 83 cases during that month. Separate analysis found that construction and manufacturing accounted for a quarter of reported invoice fraud in 2024/25.

Construction Sector Faces Higher Risks

The NCA says construction companies face higher risks because the sector relies on large networks of contractors, subcontractors, consultants, and suppliers. These businesses also handle frequent high-value payments.

Companies often process these payments through email. Fraudsters can exploit these relatively insecure communication channels to target finance teams and redirect payments.

How Invoice Fraud Works

Invoice fraud represents a form of business email compromise (BEC). Criminals impersonate genuine suppliers and change bank details on fake invoices to redirect payments into their own accounts.

Fraudsters sometimes hack email accounts to study supplier communications. They can learn how genuine invoices look and when suppliers usually send them.

Criminals may also spoof sender domains or compromise supplier email accounts. These tactics can make fraudulent messages appear genuine and increase the chances of successful payments.

NCA Warns Businesses About Financial Losses

Nick Sharp, deputy director of fraud at the NCA’s National Economic Crime Centre (NECC), said invoice fraud can cause serious financial damage to businesses. A single fraudulent payment can create major cash flow problems.

Sharp said businesses need to give finance staff the right information to identify suspicious invoices. The NCA also continues to target criminal networks through investigations and intelligence sharing with international partners.

The agency stressed that prevention remains just as important as disruption. Strong internal checks can help businesses stop fraudsters before they receive payments.

Three Steps to Stop Invoice Fraud

The NCA has urged construction finance professionals to follow three key steps:

• Check invoice changes: Look for changes to bank details or other payment information. Pay particular attention when someone demands an urgent payment.
• Verify invoices: Call the genuine supplier using a trusted phone number before transferring money. Do not rely only on email communication.
• Double-check payment details: Confirm all bank information before sending funds. Never transfer money until the details match trusted records.

Strengthen Email and IT Security

The NCA also wants finance staff to watch for changes in supplier email addresses. Unusual language, grammar, or spelling can also indicate a fraudulent message.

Companies should require a colleague to approve high-value payments. This additional check can help staff catch suspicious changes before they send money.

Businesses should also use strong password management and multi-factor authentication (MFA). They should keep anti-malware software updated to protect their IT systems.

Invoice Fraud Threat Extends Beyond Construction

Invoice fraud affects many industries, not just construction. The FBI reported that business email compromise caused nearly $2.8 billion in losses during 2024.

The FBI ranked BEC as the second-highest-grossing type of cybercrime that year. The latest warning shows why businesses need strong payment controls and regular staff training to reduce fraud risks.