It is definitely a crime

Posted on: March 25, 2019 at 09:04:45 CT

it's called stealing (or fraud in some states). If the invoices or payments were mailed, it's mail fraud. If the payments are wired, it's wire fraud.

This particular fraud scheme is very common and results in the highest dollar loss to worldwide companies each year. I hear of several cases each year in which Missouri companies were targeted, and many of them became victims. It's common because it is so easy and is not risky, unless you get caught (which is very difficult when smaller numbers are involved). Most businesses have very poor internal controls regarding payments of invoices due to the sheer volume of payments that have to be made and no one wants to spend the money to have proper controls.