Pro-forma Invoicing

The scam involves sales people from a publishing company contacting a business and falsely claiming that the business agreed to advertise in a particular publication. This is also called "false invoicing" or "false billing". The scam primarily targets small businesses. It is a breach of the Fair Trading Act to engage in pro-forma invoicing.

Pro-forma invoicing involves issuing a preliminary bill detailing the cost of goods or services before the actual transaction occurs. Unlike a formal invoice, a pro-forma invoice is not a demand for payment but serves as a prelude to the final invoice. It outlines the terms, conditions, and specifics of a potential transaction, offering a preview of costs. While commonly used in international trade to assist with customs and import regulations, businesses should be cautious, as pro-forma invoices can also be exploited in scams. Verifying the legitimacy of the transaction and the involved parties is essential to prevent fraudulent activities.

1. Ask for proof that the advertisement was agreed to-no proof,no payment.
2. Verify the booking with colleagues.
3. Ask for specific evidence that the publishing company has been commissioned by an organisation to publish the magazine on their behalf.
4. Keep records of telephone conversations discussing advertising, including date, what was discussed and who it was discussed with.
5. Have an advertising booking system in place and ensure all staff are aware of it.
6. Inform the company in writing that the advertisement they are charging you for was not authorised and will not be paid for.
7. Seek legal advice if threatened with legal action.