Despite a 28% drop in scam reports, Australians lost $16.2 million to payment redirection scams last year, with the Australian Competition and Consumer Commission (ACCC) noting an alarming trend of increasing average losses per scam, signalling more sophisticated scam operations.
“Scammers are sophisticated criminals and are becoming more targeted in how they exploit Australian consumers and businesses,” ACCC Deputy Chair Catriona Lowe (pictured above) said.
“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.”
The payment redirection scam predominantly affects sectors with frequent large monetary transactions, like real estate, legal, and construction. However, recent reports indicated expanding targets, including car dealerships and travel agencies. One notable case involved an Australian losing over $35,000 to a scammer impersonating a car dealership.
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In response to the rising threat, the National Anti-Scam Centre recently hosted an industry forum to collaborate on combating these scams and has shared information with law enforcement agencies.
Scammers intercept or mimic business emails, altering payment details on invoices. Victims, believing they are settling legitimate invoices, inadvertently send money to scammers. Often, the fraud is not detected until the business inquires about the unpaid invoice.
To safeguard against such scams, individuals and businesses are encouraged to:
“If you receive an invoice via email, take the time to call the business...to confirm that the payment details are correct,” Lowe said.
And if you suspect a scam, act immediately by contacting the bank and reporting to relevant authorities like Scamwatch and cyber.gov.au.
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