From ACCC Scamwatch - 30/3/2021
Payment redirection scams cost Australian businesses $14 million
Dear radar subscriber,
Australian businesses reported over $14 million in losses to Scamwatch due to payment redirection scams last year, and average losses so far in 2021 are more than five times higher compared to average losses in the same period last year.Total losses are much higher as these scams are reported to a range of different organisations.
In a payment redirection scam, also known as business email compromise scams, scammers impersonate a business or its employees via email and request that money, which usually is owed to the legitimate business, is sent to a fraudulent account.
“Payment redirection scams impact businesses across many industries, including real estate, construction, law, recruitment, and universities,” ACCC Deputy Chair Delia Rickard said.
“Scammers tend to target new or junior employees, or even volunteers, as they are less likely to be familiar with their employer’s finance processes or the types of requests to expect from their supervisors.”
“We recommend organisations ensure their staff are well trained in the company’s payment processes and remain aware of payment redirection scams,” Ms Rickard said.
Payment redirection scams can take several different forms. In some instances, scammers hack into a legitimate email account and pose as the business, by intercepting legitimate invoices and amending the bank details before releasing emails to the intended recipients.
In one instance, a victim lost $16,500 in a single transaction after a scammer used a staff member’s email address to send an invoice to a customer with ‘updated bank details’, redirecting the payment to the scammer’s personal bank account.