Protect Your Dealership: Avoiding Sophisticated Invoice Scams

1. Spoofed Emails:
   • The scam involved emails that appeared to come from a trusted internal employee’s official email address.
   • These emails instructed the accounts payable team to process payment for an “overdue invoice.” They even referenced the dealership’s official accounts payable email address to enhance credibility.
2. The Fraudulent Invoice:
   • The invoice claimed to be issued by a professional-sounding company and totaled $58,999.99.
   • It detailed services for a “Strategic Vision and Execution” program, complete with a detailed breakdown of charges and professional descriptions.
3. Detailed Line Items: 
   The invoice listed specific services, each with associated fees:
   • Strategic Vision and Execution – $12,000.99: Training on creating and executing strategic visions to drive growth.
   • Advanced Financial Strategies – $11,500.00: Guidance on financial tools and superior decision-making techniques.
   • Elite Leadership Training – $12,500.00: Leadership enhancement through advanced training.
   • Innovation and Change Leadership – $10,000.00: Fostering innovation and managing change effectively.
   • Strategic Networking and Partnerships – $10,000.00: Building valuable networking skills and partnerships.
   • Initial Setup and Orientation – $2,999.00: Administrative costs for onboarding and materials.
4. Professional Messaging:
   • The emails featured polished language and a fabricated correspondence trail to make the payment request appear legitimate.
   • References to leadership development and partnership success bolstered the scam’s credibility.

• Vigilance: A member of the accounts payable team flagged the invoice as suspicious and raised concerns.
• Verification: The team contacted the employee whose email appeared to authorize the payment to confirm its legitimacy.
• Confirmation of Fraud: The employee confirmed they had not sent the email or authorized the payment.

By following these steps, the dealership avoided the fraudulent payment and was able to report the incident internally for further action.

Key Takeaways for Dealerships
This incident underscores the importance of implementing strong safeguards to protect against scams. Consider the following best practices:

1. Employee Training:
   • Educate employees on recognizing phishing and spoofing attempts.
   • Regularly remind teams to verify unusual or urgent financial requests.
2. Verification Protocols:
   • Require confirmation from multiple parties before processing large or unexpected payments.
   • Use phone calls or in-person verification to confirm email requests.
3. Email Security:
   • Implement robust email security measures, such as two-factor authentication and anti-phishing tools.
   • Regularly monitor and update email security settings.
4. Incident Reporting:
   • Encourage employees to report suspicious activity immediately.
   • Share incidents with industry associations to raise awareness and strengthen collective defense efforts.