Local News

Payment Redirection Scams Catching Out More Businesses

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A scam that caught out a local sporting club in April was the most common and financially damaging style of scam to catch out Aussie businesses last year.

According to the ACCC’s latest Targeting Scams report, combined losses reported to Scamwatch, other government agencies, banks and payment platforms totalled $128 million in 2020.

Reports to ScamWatch show businesses lost at least $18 million to scams in 2020, which is a 260 per cent increase in losses from the year before.

False billing scams were the most commonly reported scam by businesses and accounted for three quarters of total losses to businesses. Small and micro businesses accounted for almost 60 per cent of these false billing reports.

In a payment redirection scam, scammers impersonate a business or its employees via email and request an upcoming payment be redirected to a fraudulent account.

The Tailem Bend Netball Club received a fraudulent email in April, directing payment of a legitimate invoice for $153,780 into a scammers’ bank account. The funds were intended for local contractors for work undertaken on newly laid netball courts and the installation of lights.

The club has since created a Go Fund Me fundraising page with the goal of $50,000.

If you think your business has been scammed, contact your bank and report it to ReportCyber, which is run by the Australian Cyber Security Centre and passes reports to law enforcement agencies for assessment.

Photo by Pixabay from Pexels