diff --git a/packages/utils/src/validation/invoice.ts b/packages/utils/src/validation/invoice.ts
index 597d2b628..9fdec8cd2 100644
--- a/packages/utils/src/validation/invoice.ts
+++ b/packages/utils/src/validation/invoice.ts
@@ -88,6 +88,29 @@ export function isValidBankname(
 export function isValidBankNumber(
   bankNumber: string
 ): FieldError.InvalidBankAccountNumber | true {
-  if (isNaN(Number(bankNumber))) return FieldError.InvalidBankAccountNumber;
+  if (isNaN(Number(bankNumber))) {
+    return FieldError.InvalidBankAccountNumber;
+  }
+
+  const isLuhnValid =
+    bankNumber
+      .split("")
+      .reverse()
+      .map((char, index) => {
+        const digit = Number(char);
+        return index % 2 === 1
+          ? digit * 2 > 9
+            ? digit * 2 - 9
+            : digit * 2
+          : digit;
+      })
+      .reduce((sum, digit) => sum + digit, 0) %
+      10 ===
+    0;
+
+  if (!isLuhnValid) {
+    return FieldError.InvalidBankAccountNumber;
+  }
+
   return true;
 }
diff --git a/packages/utils/tests/isValidBankNumber.test.ts b/packages/utils/tests/isValidBankNumber.test.ts
new file mode 100644
index 000000000..309aefc9a
--- /dev/null
+++ b/packages/utils/tests/isValidBankNumber.test.ts
@@ -0,0 +1,24 @@
+import { isValidBankNumber } from "@/validation/invoice";
+import {
+  generateValidLuhnNumber,
+  generateInvalidLuhnNumber,
+} from "./luhnGenerator";
+import { FieldError } from "@litespace/types";
+
+describe("isValidBankNumber - Generated numbers", () => {
+  const validNumbers = Array.from({ length: 100 }, () =>
+    generateValidLuhnNumber()
+  );
+
+  const invalidNumbers = Array.from({ length: 100 }, () =>
+    generateInvalidLuhnNumber()
+  );
+
+  test.each(validNumbers)("✅ Valid: %s", (number) => {
+    expect(isValidBankNumber(number)).toBe(true);
+  });
+
+  test.each(invalidNumbers)("❌ Invalid: %s", (number) => {
+    expect(isValidBankNumber(number)).toBe(FieldError.InvalidBankAccountNumber);
+  });
+});
diff --git a/packages/utils/tests/luhnGenerator.ts b/packages/utils/tests/luhnGenerator.ts
new file mode 100644
index 000000000..f9050fcd6
--- /dev/null
+++ b/packages/utils/tests/luhnGenerator.ts
@@ -0,0 +1,28 @@
+// Generate Valid Luhn Number Function
+export function generateValidLuhnNumber(length = 16): string {
+  const digits = Array.from({ length: length - 1 }, () =>
+    Math.floor(Math.random() * 10)
+  );
+
+  const sum = digits
+    .slice()
+    .reverse()
+    .map((digit, idx) =>
+      idx % 2 === 0 ? (digit * 2 > 9 ? digit * 2 - 9 : digit * 2) : digit
+    )
+    .reduce((acc, val) => acc + val, 0);
+
+  const checkDigit = (10 - (sum % 10)) % 10;
+  digits.push(checkDigit);
+
+  return digits.join("");
+}
+
+// Generate Invalid Luhn Number Function
+export function generateInvalidLuhnNumber(length = 16): string {
+  const valid = generateValidLuhnNumber(length);
+  const index = Math.floor(Math.random() * (length - 1));
+  const wrongDigit = (Number(valid[index]) + 1) % 10;
+
+  return valid.slice(0, index) + wrongDigit + valid.slice(index + 1);
+}