The ATO recently reported a 77% increase in payment redirection scams in Australia This ending financial year.
Data from companies like Scamwatch, ReportCyber, major banks and money remitters was collected revealing some very frightening numbers;
Businesses were subject to $277 million in losses due to these scams as reported by the Australian Competition and Consumer Commission report.
Scam Watch data alone revealed false billing scams, which include payment redirection scams, had the highest losses with $6.7 million.
What is a redirection scam?
Using information, they have obtained by hacking your computer systems, a scammer posing as one of your regular suppliers will tell you that their banking details have changed.
A scammer may tell you they have recently changed banks and may use stolen letterhead and branding to convince you they are legitimate.
They will provide you with a new bank account number and ask that all future payments are processed accordingly. The scam is often only detected when your regular supplier asks why they have not been paid.
How do you know if you have been scammed?
“It is so important for businesses to be alert to scams, and to do some extra checks so you can be confident you know who you’re dealing with.” ACCC Deputy Chair – Mick Keogh
If you think you or your business may be the victim of a scam, we’ve got some key indications for you:
- The company isn’t an Australian registered business
- The trader doesn’t have a permit or license
- Your name or other details are misspelt
- The request for a payment is unexpected
- You made a payment but still received a late payment notice
- The company says they have changed banks/ have a new payment system
- The company are asking for your personal or financial information (passwords, credit card number, bank account details)
- They want to ‘help’ you remotely or access your desktop through a remote-control software like ‘TeamViewer’
High risk companies
As I mentioned above, one of the most prone scams is someone posing as a company that you may already do business with. These are some of the companies that get imitated often.
ATO:
The Australian Taxation Office handle Millions of individuals and businesses tax every year. Tax can be a confusing and complicated process which makes it easy for imitation scammers to pose as the ATO.
Commonly, they will email, text or call you stating that you have unpaid taxes or that there is a problem with payments or claims, normally leading to you repaying an amount to a new bank account.
More recently, Scammers have been using recent issues like Covid 19 and the 2022 Floods to pose as relief payments, then ask for you bank details. These texts may seem legit, but it is always good practise to check. Better safe than sorry!
So, what should you do?
Call the ATO or Your Accountant! Your accountants will know about any invoices or payments for the ATO and if your still not sure, the ATO have a line to help verify if you are receiving scam messages; Call: 1800 008 540
Australia Post:
Australia Post are one of the leading postal services in Australia. Because of their size and prevalence, Aus Post is the target of many imitation scams.
I’m sure you have seen an SMS from a company claiming to be Aus Post with a parcel awaiting delivery. (I know I have!)
Just remember, Aus Post will NEVER call, text or email you asking for personal or financial information including password, credit card details or account information.
Similarly, they will never text or email you for a payment or send you links to print a label for your package.
What should you do?
Report any sort of unexpected SMS’s or E-Mails to Aus Post. Another good practice is to block the numbers and emails of these messages.
If they are saying you have incomplete shipping address, but you are certain you have, make sure to check your parcel on the Aus Post website
PayPal:
PayPal is among the most used payment systems in the world. Their effortless payment process is the common choice for many online shoppers. Pay Pal scams have come a long way from the dodgy looking website pop-ups we all know and love.
Cyber criminals will now pose as PayPal warning you of incorrect account details that you must immediately fix. Another thing they will do is include hidden links in messages posing as well-know or friendly looking businesses.
What should you do?
When opening a message and notice your mouse change when you hover over a trigger item, it is a big signal that there is a hidden link DO NOT PRESS IT! PayPal would never hide links that they want you to click on.
Once again if you are unsure, speak to PayPal directly. If you suspect someone has hacked your account, change your passwords.
How to prevent being scammed or hacked
Want to check if you information has been leaked?
You can enter your email or phone number here https://haveibeenpwned.com/
This website can check if your information has been given out or if any companies had data breaches.
Additionally, If you have a google account, you can store your passwords in your account and when logging into any websites. It will notify you if their website has breached and to change your password immediately.
Some other good practises include:
- Using two factor authentication
- Having a different password for each account you have
- Not using easy access information in your login details (E.g Middle/Last names, Addresses, date of birth)
- Using numbers, symbols and caps to break up works (e.g H0wDy, h3110, G0oD 8y3, h! +heRe, wh@t$ Up)
- Essentially, you want to make your information less predictable. These practises can make it harder for hacking Software to guess passwords.
What to do if you have been scammed?
If you think it may be someone posing as an existing supplier or business, Call the business from the number on their Google Business listing or website, that way they can verify any information changes.
Businesses that are the victims of a cybercrime, such as payment redirection scams or ransomware, should report the incident to ReportCyber as soon as possible. ReportCyber is run by the Australian Cyber Security Centre and passes reports to law enforcement agencies for assessment and intelligence purposes.
Can you get your money back from a scam?
There are many funds recovery services available, but it is never guaranteed that you will get your money back. However, there are many steps you can take after you think you have been caught in a scam to reduce the damage and protect yourself from further loss.
- Letting your industry association and other contacts know about the scam.
- Contacting your Bank, they may be able to close your account or stop the transaction
- Requesting a charge back on your bankcard if it was billed fraudulently
- Contacting your Financial advisors or accountants if it is a fake bill from any government agencies e.g., ATO
- Reporting the scam
Who do I report the scam to?
| Type of scam | Where to report |
| Banking | Your bank or financial institution |
| Centrelink, Medicare, Child Support and MyGov related scams | Services Australia Scams and Identity Theft Helpdesk – call 1800 941 126 |
| Cybercrime | ReportCyber |
| Financial and investment scams | Australian Securities and Investments Commission |
| Fraud and theft | Your local police |
| Spam | Australian Communications and Media Authority |
| Tax related scams | Australian Taxation Office / Your Accountant |
| Redirecting scams | The official website of the company it is posing as |
Still unsure if you’re making the right moves?
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Book a consultation with the advisors at Second Look for a in depth look at your business and its strategies for the new financial year.
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