How to Check if a Supplier’s New Bank Details Are Legitimate
If you’re a treasurer or committee member in a self-managed scheme, you probably handle payments to regular contractors like cleaners, gardeners, or maintenance trades. But what happens when one of them suddenly sends an invoice with different bank account details?
Before you hit “pay,” stop and double-check because this is one of the most common ways scammers target strata & community schemes as well as small organisations.
Why You Should Always Verify Banking Changes
Scammers often hack or impersonate legitimate suppliers. They send invoices that look genuine same logo, layout, and tone but with new banking details that send your money straight to them instead. Once paid, it’s almost impossible to recover the funds. Professional strata management companies already employ these measures so anyone who is self-managing their scheme should do so too.
Simple Steps to Confirm the Change Is Genuine
Don’t pay yet
Put the payment on hold until you’ve verified any changes.
Contact the supplier directly using old details
Phone or email the gardener or electrician using a number you’ve used before or from a publicly listed source e.g. google or white pages.
Do not use the contact details shown on the suspicious invoice.
A quick call like this works best:
“Hi, we’ve received an invoice from you with your new bank details. Before we pay we want to make sure its all legitimate to prevent a scam. Can you please confirm these details are correct? Can you read them back to me.”
Your regular contractors won’t mind providing them to you and will appreciate the diligence.
Look for warning signs.
A slightly different email address (for example, @company.co instead of @company.com)?
A personal bank account name instead of the business name?
An invoice that looks rushed or is formatted differently?
Pressure to pay quickly or urgently?
Compare past invoices
Check that the ABN, business name, licence numbers, names and contact details match previous records.
Verify the ABN
Visit www.abr.business.gov.au to confirm the business name and ABN on the invoice are legitimate and linked to your usual supplier.
Document your checks
Keep a short note in your records who you spoke to, how they confirmed, and when. It helps protect your scheme and shows due diligence.
Let your committee know
Remind other members that any new bank details must be verified before payment. This keeps everyone alert and consistent.
Setting Up Good Practice
Consider adopting simple internal rules protect your scheme from losing thousands of dollars to fraud, e.g.
No supplier bank details will be changed or paid to until confirmed by phone with a verified contact?
Banking details are checked by at least 2 committee members?
This one habit can protect your scheme from losing thousands of dollars to fraud.
Final Thought
Fraudulent invoice scams can happen to anyone even careful and experienced treasurers. Taking a few minutes to verify payment details every time something looks different is one of the easiest ways to keep your strata scheme’s finances safe.
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