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Dealers Must Be Vigilant About Potentially Fraudulent Invoices

Mar 04, 2021

Dealerships are often the target of various invoice scams, which is why it is critical that they verify that the product or service was actually ordered by an authorized individual at the dealership and was delivered. Dealers must beware of correspondence from companies that seek to scam them into sending a payment for a product or service that was never ordered or delivered.

NJ CAR continues to see scams in which a company sends a document labelled as an “order form” but designed to look like an invoice, hoping to confuse unsuspecting dealerships into making the immediate payment requested.

The Coalition recently heard from a South Jersey dealership regarding an “invoice” from a Florida-based company for cleaning supplies that the dealership never ordered.  Suspicious of the mailing, the dealership called the company to challenge the invoice and received an apology, told the invoice was sent “in error” and the dealership didn’t need to pay.

Dealership personnel should be aware of these scams, which come in a variety of forms.  Below are a few preventative measures dealerships can take to help protect themselves against invoice fraud:

  • Designate certain individuals in the dealership who are responsible for ordering products or services.
  • Check all invoice and order form paperwork closely, watching especially for invoices and order forms from unusual places.
  • Confirm orders with the person who supposedly authorized the purchase.
  • Don’t pay for goods or services until you know for certain that they were legitimately ordered and received.