Invoice payment fraud and a business recovery dispute

A message announcing new bank details can turn an ordinary invoice into a payment dispute. Verify any change through a trusted contact method already on file before transferring funds. A familiar logo or an email in an existing thread does not establish authenticity.

If a transfer may have gone to the wrong account, contact your financial institution promptly and preserve the emails, headers, payment instructions, and transaction records. Report suspected fraud through the appropriate authorities. Whether the customer or supplier remains liable is a separate legal question requiring the agreement, communications, and circumstances. Do not assume the criminal report recovers the money or resolves the civil balance. A focused legal assessment should distinguish the fraud response from any claim between the contracting parties.

Preserve the complete message trail, including original emails and headers, attachments, account-change instructions, and the payment record. Record who verified the instruction, how verification occurred, and when the problem was discovered. Tell the financial institution the facts promptly so it can assess any available response. Avoid altering or deleting a compromised mailbox before relevant evidence is preserved through appropriate technical assistance. A screenshot may be useful but can omit information needed to investigate how the instruction was introduced.

For the civil dispute, assemble the original contract, ordinary payment practice, authorized contacts, and communications from both businesses. The fact that a customer sent money does not alone establish that the supplier received payment, while the presence of fraudulent instructions does not automatically determine which party bears the loss. Liability requires analysis of the actual agreement and conduct. Keep fraud reporting, banking recovery efforts, insurance questions, and the invoice claim coordinated but distinct. Any recovered amount should be reconciled so negotiations address the remaining loss rather than an outdated demand.

Sources

• Competition Bureau protecting a business from fraud

Read next: Pressure sales and protecting an Ontario consumer claim

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 15 October 2026: check the current law, forms and dates before you act.

Photos from Pexels: A screen showing digital security · A video call on a laptop.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.