Agencies Launch Campaign to Stem Millions in Invoice Fraud Targeting Construction Sector

The National Crime Agency (NCA) and the National Federation of Builders (NFB) have initiated a joint campaign aimed at curbing invoice fraud, a financial crime that costs businesses millions annually. The initiative specifically targets accounts payable and finance professionals within the construction industry, a sector identified as highly vulnerable due to its complex supply chains and reliance on email-based payment instructions.

Background and Context

Invoice fraud, also known as payment diversion fraud, occurs when criminals deceive businesses into paying fake invoices or diverting legitimate payments to accounts controlled by fraudsters. The construction sector is particularly susceptible because it frequently involves high-value transactions across a network of contractors, sub-contractors, and consultants. Criminals exploit these operational complexities by intercepting emails or impersonating suppliers to manipulate payment details. According to the National Crime Agency, this type of fraud is among the most common and costly forms of financial crime affecting UK businesses today.

Key Figures and Entities

Recent data highlighted by Report Fraud quantifies the scale of the threat. In September 2025 alone, victims lost a total of £3,908,086 across 83 reported cases, averaging more than £47,000 per incident. Invoice fraud accounted for 85% of all Payment Diversion Fraud losses that month. Analysis for the 2024/2025 period indicates that the construction and manufacturing sectors were the hardest hit, comprising 25% of all impacted industries.

Nick Sharp, Deputy Director of Fraud at the National Economic Crime Centre (NECC) within the NCA, noted that businesses can be destroyed by the loss of cashflow resulting from these fraudulent payments. James M Butcher, Deputy Chief Executive of the National Federation of Builders, emphasized that collaboration and education are key to stopping fraudsters and strengthening resilience across the industry.

Legal and Financial Mechanisms

The fraud typically operates through the compromise of email communications. Fraudsters monitor ongoing conversations between buyers and suppliers, waiting for the moment a legitimate invoice is due. They then send a notification altering the bank details or pressuring for urgent payment to an fraudulent account. To combat this, the campaign advises finance professionals to strictly verify changes to invoice details by calling suppliers on previously used phone numbers, rather than relying on email correspondence which may have been intercepted.

International Implications and Policy Response

This campaign is part of a broader strategic response to economic crime, aligning with the Home Office’s national Stop! Think Fraud campaign. The NCA stated that it is actively targeting and disrupting the criminal networks behind invoice fraud through investigations and intelligence sharing with international partners. However, the agency maintains that prevention is equally important, aiming to reduce opportunities for criminals by strengthening internal financial defenses within high-risk sectors.

Sources

This report draws on a press release from the National Crime Agency, data from the Action Fraud reporting centre, and statements from the National Federation of Builders.