How I Saved Our Client from a $1500 Fraud (And How You Can Too)

The Fraud Attempt

I work as an AP Specialist for Apex Global Solutions , a company that provides backend office services for Skilled Nursing Facilities. Today, I got a call from an Administrator for one of our clients, a nursing home in North Carolina. He said that their electric company had called him and said that they had a cut-off notice past due and that they would shut off the power unless he paid $1500 in cash or with a business debit card by 3:00 p.m. in-person!

This sounded very suspicious to me, so I asked him for the call-back number and the name of the representative. He gave me the number and said his name was Eric. I told him not to panic and that I would look into it.

How I Caught It

I checked the account login for the electric company and saw that everything was fully paid, as we had set up auto-pay. There was no overdue balance or cut-off notice.

I called the number that the Administrator had given me and spoke to Eric. He gave me a different account number than the one we had on file, and he couldn’t provide me with any invoice or confirmation number. He also insisted that I had to pay in cash or with a business debit card in-person, and that he couldn’t accept any other form of payment.

I asked him for his full name and employee ID. He hesitated and then hung up.

Then, I looked at the actual invoices for the facility and called the number on them. The real Billing Representative confirmed that the call from Eric was a fraud attempt, and there was no cut-off notice or technician on the way. He thanked me for reporting the fraud and said they would notify the authorities.

What I Did Next

I called back the Administrator and told him what had happened. He was relieved and grateful that I had caught the fraud and saved him $1500. He also thanked me for being quick and professional.

I also informed my boss at Apex Global Solutions about the incident and sent him all the details and evidence.

How to Avoid Fraud in the Future

Fraud is a serious threat to the AP industry, but it can be avoided with some vigilance and research. Here are some tips on how to spot and prevent fraud:

• Always verify invoices. Before paying any invoice, make sure it matches your records and contracts. Look for any discrepancies in amounts, dates, account numbers, or contact information. If you receive an invoice from a new vendor or an unfamiliar source, do some background checks on them before paying.
• Always verify calls. If you receive a call from a vendor or a service provider claiming that you owe them money or that there is an urgent issue with your account, don’t take their word for it. Ask them for their name, company name, phone number, email address, and any other relevant information. Then, hang up and call back using the official number you have on file or on their website.
• Never pay immediately. No legitimate vendor or service provider would demand that you pay immediately or threaten to cut off your service or sue you if you don’t. They would also accept various forms of payment, not just cash or debit cards. If someone pressures you to pay right away or only accepts certain payment methods, it’s likely a scam.
• Report fraud. If you encounter a fraud attempt or fall victim to one, report it to your boss, your client, your vendor, your bank, and the authorities as soon as possible. Provide them with all the details and evidence you have.

Conclusion

Fraud is a serious threat to the AP industry, but it can be avoided with some vigilance and research. I hope this blog post has helped you learn how to spot and prevent fraud in your own business. If you need any help with managing your AP, contact Apex Global Solutions today for a free consultation. We are a trusted and reliable company that provides backend office services for Skilled Nursing Facilities. We have the experience and skills to handle any situation and save you time and money.