Construction Industry Targeted in New Campaign Against Multi-Million Pound Invoice Fraud

Construction businesses across the UK are being urged to tighten their financial controls as new figures reveal invoice fraud is costing victims nearly £4 million monthly, with the construction and manufacturing sectors accounting for a quarter of all reported losses. The National Crime Agency (NCA) has partnered with the National Federation of Builders (NFB) to launch a targeted awareness campaign aimed at reducing what authorities describe as one of the most harmful forms of financial crime currently affecting British industry.

Background and Context

Invoice fraud, also known as payment diversion fraud, has emerged as a pervasive threat to businesses of all sizes, though certain sectors face disproportionate risks. The construction industry presents an especially attractive target for criminals due to its complex web of contractors, subcontractors, consultants and suppliers, coupled with frequent high-value payments typically arranged via email communication. This digital reliance creates multiple opportunities for fraudsters to intercept legitimate payment instructions and divert funds to accounts they control.

According to data from Report Fraud, September 2025 saw victims lose a total of £3,908,086 across just 83 reported cases of invoice fraud, averaging more than £47,000 per incident. Perhaps most alarmingly, invoice fraud accounted for 85% of all payment diversion fraud losses during that single month. Analysis from the 2024/25 financial year indicates that the construction and manufacturing sectors have been the hardest hit, representing 25% of all reported cases.

Key Figures and Entities

The campaign is being spearheaded by the National Crime Agency through its National Economic Crime Centre (NECC), in collaboration with the National Federation of Builders, which represents small and medium-sized construction firms across England and Wales. The initiative is also supported by the Home Office's national Stop! Think Fraud campaign, reflecting a coordinated government response to what officials describe as a highly damaging form of economic crime.

Nick Sharp, Deputy Director of Fraud at the NECC, emphasized the devastating impact these crimes can have. "Businesses can be destroyed by a loss of cashflow from a fraudulent payment, families and livelihoods are at serious risk of collapse if fraudsters are successful," Sharp stated, noting that while the NCA is actively targeting criminal networks behind invoice fraud through investigations and international intelligence sharing, prevention remains equally crucial.

James M Butcher, Deputy Chief Executive of the National Federation of Builders, expressed the organization's commitment to the campaign, highlighting that "collaboration and education are key to stopping fraudsters." The NFB has been actively promoting awareness among its members to strengthen resilience against financial harm.

Legal and Financial Mechanisms

Invoice fraud typically involves criminals impersonating legitimate suppliers, intercepting email communications, or creating convincing fake invoices to generate immediate payments. The sophisticated nature of these attacks means businesses often only realize they have been deceived after funds have been transferred and dissipated through complex banking networks, sometimes crossing international borders, making recovery exceptionally difficult.

The fraudsters' primary objective is to manipulate victims into transferring funds to accounts they control rather than the legitimate destination. This often involves compromising business email systems and monitoring correspondence for payment opportunities, then inserting fraudulent bank details or subtly altering legitimate invoices. The complexity of construction supply chains means such frauds can go undetected for extended periods, with businesses potentially making multiple fraudulent payments before discovering the deception.

To combat this threat, the NCA and NFB have issued specific guidance highlighting three essential protective measures: checking for any unexpected changes to invoice details or bank details, verifying payment instructions by calling suppliers on previously used phone numbers, and never transferring money until complete certainty about the details is established.

International Implications and Policy Response

This campaign reflects a broader recognition that invoice fraud represents not just a domestic challenge but part of a global criminal enterprise. As Sharp noted, the NCA is actively pursuing investigations and sharing intelligence with international partners to target the criminal networks behind these frauds. The cross-border nature of many invoice fraud operations requires coordinated international responses and improved information sharing between financial institutions and law enforcement agencies.

The focus on the construction sector acknowledges the disproportionate impact on this vital industry, where profit margins are often tight and cashflow is critical for business survival. A successful fraud can lead to insolvency, with knock-on effects throughout the supply chain. The campaign represents an attempt to address these vulnerabilities through education rather than solely relying on enforcement after the fact.

The effectiveness of this awareness approach will likely be monitored closely, as invoice fraud continues to evolve alongside legitimate business practices. With increasingly sophisticated methods including business email compromise and social engineering, the need for constant vigilance in financial transactions has never been more apparent.

Sources

This report draws on the official press release from the National Crime Agency, fraud data from Report Fraud, and the National Federation of Builders. The joint awareness materials, including the information sheet on invoice fraud, have been published as part of the campaign co-branded with the Home Office's Stop! Think Fraud initiative.