Aipedia: Event and wedding planners

Supplier payment fraud and AI scams: diverted deposits and insurance

Aipedia, by the Apex broking team · Last reviewed 2026-10-30

AI makes fake supplier invoices and spoofed emails more convincing, and planners who pay or forward supplier deposits are an obvious target. A single diverted payment can wipe out a venue or catering deposit months before the event.

Part of: AI in Event and wedding planners

In short

Fraudsters use AI to copy supplier branding, write convincing emails and produce realistic invoices with changed bank details. Planners who handle client money or tell clients where to pay are exposed. A planner owes reasonable care and skill when handling payments, so failing to verify new bank details can lead to a client claim. PI may respond to that claim, subject to the wording, but many policies exclude or limit loss of money and cyber events. Crime and social engineering cover deal with the planner's own funds. Verifying bank details by phone is the main control.

How AI is changing payment fraud

Payment diversion is not new, but AI removes many of the old warning signs. Fraudsters can now:

write emails in a supplier's style, free of the spelling errors that once gave scams away;
produce invoices that match a real supplier's layout and branding;
use details scraped from social media and public posts to time the request around a real event;
imitate voices or video in follow-up calls.

Planners are attractive targets because they deal with many suppliers, pay deposits on tight deadlines and often post event details online.

The planner's duty when handling money

Where a planner takes client money to pass on to suppliers, or tells clients where to pay, that is part of the service and must be done with reasonable care and skill under section 49 of the Consumer Rights Act 2015 for couples, or section 13 of the Supply of Goods and Services Act 1982 for corporate clients. A competent planner would be expected to verify a change of bank details through a known contact before paying or passing the details on.

Passport and travel details for destination events are a further fraud target, covered in AI for destination weddings and travel logistics. Fraudsters also exploit leaked guest data, so the ICO's AI guidance and wider data duties are relevant.

What can go wrong

Illustrative scenario. A planner receives an email that appears to come from a wedding venue, with an invoice for the balance and a note that the venue has changed banks. The email matches the venue's style and refers to the correct date and guest numbers. The planner forwards the new details to the couple, who pay. Weeks later the venue chases the unpaid balance. The money cannot be recovered, and the couple claims the loss from the planner for failing to check the change.

In a variant, the planner pays from its own account and the loss falls on the business directly. In another, a fraudster contacts guests on a destination wedding with a convincing "updated" payment link for accommodation, using details taken from a compromised mailbox. Guests lose money, and the client asks why their data was exposed.

How PI, crime and social engineering cover respond

Which policy responds depends on whose money is lost and how. The usual position, subject to the wording, is:

PI may respond to the client's claim that the planner negligently passed on or acted on fraudulent details, but many wordings exclude or limit claims involving loss of money, theft or cyber events.
Crime or social engineering cover is designed for the planner's own funds lost to deception; see social engineering and fund transfer fraud and commercial crime insurance.
Cyber may respond where a mailbox was compromised, including investigation costs.

Apex explains the AI dimension in CEO fraud and deepfake payment scams insurance. Gaps between these covers are common, so check them together.

Practical controls

Most diversion frauds fail if a planner follows a fixed payment routine:

call the supplier on a number you already hold before acting on new bank details;
tell clients at the outset that bank details will never change by email;
use multi-factor authentication on email and booking systems;
avoid posting event dates and supplier names publicly before the event;
keep two people involved in large or unusual payments;
report suspected fraud to the bank immediately.

How Apex helps

Apex arranges PI, crime and cyber cover for event and wedding planners, and a broker can check how they fit together for payment fraud. See AI in event and wedding planning and does event planners' PI cover AI mistakes.

Sources

Frequently asked

Is a planner liable if a client pays a fraudster after a fake invoice?

It depends on the facts. If the planner passed on new bank details without reasonable checks, the client may argue the planner failed to use reasonable care and skill. Telling clients that bank details never change by email, and verifying changes by phone, reduces the risk.

Does PI cover money lost to payment fraud?

Sometimes, for a client's claim against the planner, but many PI wordings exclude or limit loss of money, theft and cyber events. The planner's own lost funds are usually a matter for crime or social engineering cover rather than PI.

How can I spot an AI-written fake invoice?

Often you cannot, because AI removes the usual signs. Treat any change of bank details as suspicious, however genuine the email looks, and confirm it by calling the supplier on a number you already hold.

Should I hold client money in a separate account?

Keeping client money separate from business funds makes it easier to show what belongs to whom and to trace a payment if something goes wrong. Agree in writing with clients whether they pay suppliers directly or through you, because that affects who carries the risk of a diverted payment.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.