Sydney, April 4: Australians have been strongly advised to verify payment details with businesses through direct communication before settling emailed invoices.
This cautionary advice comes in light of a notable surge in losses attributed to payment redirection scams, with Australians reporting a staggering $16.2 million lost in the previous year.
Despite a 28 per cent reduction in the total reports to Scamwatch, the amount of money lost saw a three per cent increase from the previous year, highlighting a concerning trend of more substantial losses per scam incident.
The Australian Competition and Consumer Commission (ACCC) Deputy Chair, Catriona Lowe, expressed concern over the increasing sophistication of these scams.
According to Lowe, scammers are impersonating legitimate businesses, often altering payment details in invoices to redirect payments to themselves.
This fraudulent activity is notoriously difficult to detect, as scammers either hack into a business’s email system or slightly alter the business’s email address to deceive consumers.
Historically, industries that handle large financial transactions, such as real estate, legal, and construction sectors, have been primary targets. However, recent reports indicate that scammers are also targeting car dealerships and travel companies, along with their customers.
One notable case involved an Australian man losing over $35,000 after paying what he believed was the remaining amount for a car purchase, only to discover that the invoice was fraudulent and the dealership had not received the payment.
The rise in these scams has prompted the National Anti-Scam Centre to collaborate with targeted sectors, sharing insights and strategies to combat this issue.
Lowe emphasizes the importance of verifying payment details by contacting businesses directly, especially when invoices are received via email.
The modus operandi of these scams involves the alteration of payment details (such as BSB and account numbers) on invoices by accessing a business’s email account or modifying the email address.
Victims typically realize the scam only after the legitimate business inquires about unpaid invoices, despite their belief that payment had already been made.
To safeguard against such scams, consumers are urged to halt immediate actions upon receiving an invoice, think critically about the authenticity of the communication, and protect themselves by promptly contacting their bank if suspicious activity is detected.
Reporting incidents to Scamwatch also plays a crucial role in raising awareness and preventing further scams.
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