Businesses lost $227 million in 2021 to Payment Redirection scams

Businesses lost $227 million in 2021 to Payment Redirection scams

Payment Redirection scams are proving very profitable for scammers with a new report released by the Australian Competition and Consumer Commission indicating that payment redirection scams resulted in $227 million losses for Australian consumers and businesses.

A payment redirection scam, also known as business email compromise scams, involve the scammers impersonating a business or its employees via email and request that money from the target. The money is usually legitimately owed to a business, but the details for payment is a fraudulent account set up by the scammer.

How to protect yourself?

If you are a business wanting to protect yourself and your customers from payment redirection scams then you can follow some of these tips:

  1. Ensure payment details do not change and tell your customers that you will not change your bank details without confirmation through other methods (such as a phone call).
  2. If you are going to pay an invoice and check to see if the details have changed. If so, give the other business a call (on a trusted number) to double check. Typically, Online Banking Systems notice if you are transferring funds into a new account. If such a warning pops up and you have paid this business once before, that would be a red flag.
  3. Offer training to your employees to ensure that they are familiar with these types of scams and have appropriate policies and procedures for payment of invoices.
  4. Take out cyber insurance.
Source: ACCC – Scams robbed Australians of more than $2 billion last year

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