30 Apr 2024
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By Antonia Athos, Corporate Business Manager at PSK
Scammers are increasingly impersonating businesses, sending out fake invoices with altered payment details, and ultimately diverting funds intended for legitimate transactions into their own pockets.
According to recent data released by the Australian Competition and Consumer Commission (ACCC), Australians have reported staggering losses of $16.2 million to payment redirection scams in the past year alone. This alarming figure underscores the severity of the situation and highlights the need for heightened vigilance when it comes to financial transactions.
Despite a decrease in the total number of reported incidents to Scamwatch by 28%, the total amount lost has increased by 3%. This discrepancy suggests that scammers are becoming more adept at targeting their victims, resulting in larger financial losses per scam. It is clear that these criminals are employing increasingly sophisticated tactics to exploit both consumers and businesses alike.
The ACCC Deputy Chair Catriona Lowe issued a stark warning, emphasising the evolving nature of these scams: "Scammers are sophisticated criminals and are becoming more targeted in how they exploit Australian consumers and businesses. These criminals are posing as genuine businesses that a consumer has recently dealt with, sending fake invoices with altered payment details so that the money ends up with the scammer."
Considering these developments, we urge all our clients to exercise extreme caution when making payments based on emailed invoices. To safeguard against falling victim to these scams, we recommend the following precautions:
1. Verify Payment Details: Before making any payments, always double-check the accuracy of the payment details provided in the invoice. Take the extra step of confirming these details directly with your Adviser through trusted contact channels, such as a verified phone number or email address.
2. Exercise Scepticism: Be wary of unexpected or unusual payment requests, especially those that deviate from established procedures. If something seems out of the ordinary or raises suspicion, do not hesitate to investigate further before proceeding.
3. Report Suspicious Activity: If you believe you have been targeted by a payment redirection scam or have encountered suspicious activity, report it immediately to the relevant authorities, such as the ACCC's Scamwatch or your local law enforcement agency.
We cannot overstate the importance of remaining vigilant and proactive in the face of these increasingly sophisticated scams. By staying informed and exercising caution we can collectively combat the threat posed by scammers and protect you and your business from financial harm.
For more information and resources on how to safeguard against payment redirection scams, we encourage you to read the full article published by the ACCC on Thursday, 4 April 2024.
As always, if you have any questions or your personal circumstances have changed please do not hesitate to contact your financial adviser.
General Advice Warning - Any advice included in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.
