False invoices are a common mechanism used in financial fraud schemes. They may be issued to fictitious vendors, used to inflate expenses, or submitted to support the diversion of funds. In many cases, these invoices appear legitimate at first glance and may even be processed through routine internal controls.
Whether intentional or due to oversight, the use of false invoices can have serious financial, legal, and reputational consequences for businesses, nonprofit organizations, and government institutions.
How LMD Forensic Accounting Can Help
At LMD Forensic Accounting, we apply a rigorous and systematic process to uncover and analyze false invoice schemes. Our goal is to identify irregularities, assess the extent of financial loss, and provide clear documentation to support legal or disciplinary action.
Our approach typically includes:
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Detailed review of the vendor and payment history
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Cross-referencing invoices against contracts, delivery records, and bank statements
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Identifying duplicate payments, altered amounts, or unusual billing patterns
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Evaluating internal controls related to procurement and accounts payable
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Producing clear, objective reports suitable for legal proceedings or internal use
We work discreetly and efficiently, collaborating with management, legal counsel, and relevant authorities to ensure the integrity of our findings.
False Invoices
Examples of false invoice schemes may include:
False invoice schemes can vary in complexity, ranging from simple overbilling to coordinated efforts involving internal and external collusion. These schemes are often designed to blend in with routine transactions, making them difficult to detect without targeted review. Common examples include:
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Invoices from nonexistent or shell companies
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Duplicate or inflated invoices submitted for legitimate services
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Altered invoices used to change payment details or amounts
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Invoices for goods or services that were never delivered
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Collusion between internal staff and vendors to generate fraudulent invoices
If you suspect that false invoices may be affecting your organization, contact LMD Forensic Accounting for a confidential consultation.