Invoice scams, where a fraudster impersonates a legitimate
supplier with a fake invoice and false bank account details, are a
fact of the modern commercial landscape.
Security measures such as telephoning the supplier to confirm
remittance details are now standard practice.
But who bears the loss if payment for a legitimate invoice is
made to a fraudster's bank account and is irrecoverable?
In a 2020 article we noted the absence of Australian
authority on the point. Since then, two reported Australian
decisions have altered that, the latest being Mobius Group Pty
Ltd v Inoteq Pty Ltd, a decision of the District Court of
Western Australia.
Background
Mobius Group completed electrical work for Inoteq and invoiced
the company a total of $235,400.29 in March and April 2022.
