Construction & Trades Fraud: Suppliers, Deposits & Wires

Supplier & materials fraud

Attackers impersonate lumber yards, equipment rental houses, or subcontractors and email “updated wiring instructions” before a draw. Sometimes they send entirely fake material invoices that look like your usual PDF template. Always match to POs and call a known number — see vendor & invoice fraud.

Jobsite & change-order tricks

• Impersonated GC or owner directing a hurried deposit to a new account
• Fake lien-release or insurance-certificate emails with malware
• “Inspector” or “utility” demanding payment via gift cards / crypto — verify via Trusted directory
• Crew members recruited as money mules for “supplier refunds”

Real estate & escrow wires

Closings are a top BEC scenario: last-minute emailed wire changes for earnest money or payoff. Title and escrow companies will not casually email new instructions without multi-channel verification. Buyers and sellers should call the office number from the engagement letter — not the email signature.

• Confirm wiring instructions by phone every time for large amounts
• Be wary of portals that appeared only in an email link
• Related: business email compromise and rental scams for deposit fraud

Controls for owners & PMs

1. 1
   Dual approval for vendor bank changes and wires over your threshold.
2. 2
   MFA on email and project tools — 2FA.
3. 3
   Shared “payment change” channel — SMS/phone tree that criminals cannot easily spoof mid-email.
4. 4
   Train supers and office staff — awareness guide.
5. 5
   Scan odd invoices in ScanBeyond before AP pays.

FAQ