Pro Forma Invoicing or False Billing Scams

What is 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. 

How to avoid pro forma invoices

• Ask for proof that the advertisement was agreed to - no proof, no payment.
• Verify the booking with colleagues.
• Ask if the publisher has had a circulation audit done by the Circulations Audit Bureau (CAB) or the Audit Bureau of Circulations (ABC). While the absence of an audit does not necessarily mean the publication is not genuine, its presence is positive evidence otherwise.
• Ask for specific evidence that the publishing company has been commissioned by an organisation to publish the magazine on their behalf.
• Keep records of telephone conversations discussing advertising, including date, what was discussed and who it was discussed with.
• Have an advertising booking system in place and ensure all staff are aware of it.
• Inform the company in writing that the advertisement they are charging you for was not authorised and will not be paid for.
• Seek legal advice if threatened with legal action.
• Inform the Commerce Commission.

Overseas based pro forma invoicing schemes

• International Business or Fax Directory (published by IT and T, Switzerland)
• International Trade and Business Directory (published by United Telecom. Trust Switzerland)
• Internet Business Guide (published by UTP Digital Directories, Switzerland)

If you receive an invoice from these companies, we suggest you do not pay.

Report it!

Scamwatch does not receive reports on this type of scam.  If you have been approached by a betting scheme which you think is a scam you can report it to the New Zealand Commerce Commission.