So how can an organisation make sure that they are not allowing for a false creditor to be set up on the system thereby allowing false invoices to be paid? Here are some points that may assist in the approval process for new creditors:
- A free ASIC search can show if the company is actually registered and confirm the ACN – for those not in Australia, a confirmation that the company has officially been registered with the appropriate government authority;
- Verify the personal details of the directors – this can be done by checking the telephone directory, a Google search or other similar search;
- Determine if the company has a credit rating;
- Search for any legal proceedings against the company – many courts have an online system of checking matters currently before the court as well as those that had been finalised;
- Check the telephone directory to determine if the company is listed; and
- Confirm the trading address through means such as Google Maps.