Protect your wallet: Aussies lost $16.2 million to this alarming scam trend
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In the digital age, scams have become as sophisticated as the technology that enables them.
The Australian Competition and Consumer Commission (ACCC) warned Australians to be extra vigilant, as payment redirection scams have led to a staggering loss of $16.2 million over the past year.
This alarming trend is a reminder that no one is immune to the threat of cybercrime, and it's crucial to stay informed and cautious.
Payment redirection scams, also known as 'business email compromise' scams, involve fraudsters impersonating legitimate businesses and sending fake invoices with altered payment details.
The goal is to trick individuals or companies into transferring money directly into the scammer's account.
These scams are both prevalent and devastating, with one couple losing an eye-watering $800,000 in a sophisticated ruse involving a property purchase.
The ACCC's Scamwatch service has noted that these scams are increasingly targeted and refined.
Scammers often use information obtained from previous interactions with the victim or through compromised email accounts to make their fake invoices appear legitimate.
High-value industries such as real estate, construction, travel, and automotive are at risk due to the large sums of money typically involved in transactions.
Last year, a couple lost almost $275,000 to this scam after purchasing their first home in the Blue Mountains, New South Wales.
Meanwhile, another person lost $35,000 after cybercriminals compromised the email of a car dealership and provided him with a fake invoice.
The ACCC said: ‘After paying the deposit securely through the dealership’s official website, he received an email with an invoice for the remaining amount owed, which he paid thinking it was genuine.’
‘When he went to pick up his new car, he found out that the invoice was a scam and the dealership had only received his deposit.’
However, it's not just the big players who are being targeted. Everyday consumers are also at risk, with scammers posing as road services to collect overdue tolls or other small fees.
The ACCC Deputy Chair, Catriona Lowe, emphasised that these criminals are exploiting Australian consumers and businesses with high sophistication.
‘These criminals are posing as genuine businesses that a consumer has recently dealt with, sending fake invoices with altered payment details so that the money ends up with the scammer,’ she explained.
The impact on older Australians is especially concerning.
Recent data from Scamwatch revealed that individuals aged 65 and over are the most affected by scams online, with losses amounting to nearly a third of all reported cases in the last quarter of 2023.
This represents a 57 per cent increase from the previous quarter, highlighting the vulnerability of our senior community to online threats.
‘Over 16,000 people who reported losing money (in 2023) said it started on a social media platform or an online forum with an ad, a post, or a message,’ Scamwatch stated.
‘Many people reported placing an order, usually after seeing an ad, but never received their goods. Some described advertisements that impersonated real, online retailers.’
Overall, Australians were scammed out of $477 million last year.
The ACCC advised the public to always verify payment details directly with the business, especially before making large transactions.
If you suspect a scam or have already transferred funds, it's imperative to contact your bank and Scamwatch immediately. Time is of the essence in these situations, as early intervention can sometimes lead to the recovery of funds.
However, there is a silver lining: overall losses to scams in Australia decreased in the last quarter of 2023.
Significant drops in cryptocurrency, bank transfer, and investment scam losses were noted. This suggests that awareness and prevention efforts may be starting to pay off.
The average reported loss to scams is still a significant $1,224, with high-cost investment scams contributing to over half of this amount.
Phishing scams, which typically involve deceptive emails, remain the most reported type of scam.
It's crucial to stay informed and protect ourselves and our loved ones from these financial predators. Here are some tips to help stay safe:
1. Always verify the source: If you receive an invoice, mainly via email, confirm the payment details directly with the company using a known and trusted contact method.
2. Be sceptical of unexpected requests: If you're asked to make a payment or provide personal information unexpectedly, take a moment to question the legitimacy of the request.
3. Use secure payment methods: When possible, use secure payment methods that offer fraud protection, and avoid direct bank transfers to accounts you haven't verified.
4. Keep software updated: Ensure your computer and mobile devices have the latest security updates and antivirus software installed.
5. Educate yourself: Stay up-to-date with the latest scam trends by visiting the Scamwatch website and subscribing to their alerts.
Sky News Australia covered a specific case of a payment redirection scam here:
Source: Sky News Australia/YouTube
Have you or someone you know been affected by a payment redirection scam? What measures have you taken to protect yourself? Share your experiences and tips in the comments below to help others in our community stay safe.
The Australian Competition and Consumer Commission (ACCC) warned Australians to be extra vigilant, as payment redirection scams have led to a staggering loss of $16.2 million over the past year.
This alarming trend is a reminder that no one is immune to the threat of cybercrime, and it's crucial to stay informed and cautious.
Payment redirection scams, also known as 'business email compromise' scams, involve fraudsters impersonating legitimate businesses and sending fake invoices with altered payment details.
The goal is to trick individuals or companies into transferring money directly into the scammer's account.
Australians lost $16.2 million in the past year due to payment redirection scams. Image source: Freepik
These scams are both prevalent and devastating, with one couple losing an eye-watering $800,000 in a sophisticated ruse involving a property purchase.
The ACCC's Scamwatch service has noted that these scams are increasingly targeted and refined.
Scammers often use information obtained from previous interactions with the victim or through compromised email accounts to make their fake invoices appear legitimate.
High-value industries such as real estate, construction, travel, and automotive are at risk due to the large sums of money typically involved in transactions.
Last year, a couple lost almost $275,000 to this scam after purchasing their first home in the Blue Mountains, New South Wales.
Meanwhile, another person lost $35,000 after cybercriminals compromised the email of a car dealership and provided him with a fake invoice.
The ACCC said: ‘After paying the deposit securely through the dealership’s official website, he received an email with an invoice for the remaining amount owed, which he paid thinking it was genuine.’
‘When he went to pick up his new car, he found out that the invoice was a scam and the dealership had only received his deposit.’
However, it's not just the big players who are being targeted. Everyday consumers are also at risk, with scammers posing as road services to collect overdue tolls or other small fees.
Scammers often pretend to be road services to deceive Australians into paying overdue tolls. Image source: Southern Cross Credit Union/Facebook
The ACCC Deputy Chair, Catriona Lowe, emphasised that these criminals are exploiting Australian consumers and businesses with high sophistication.
‘These criminals are posing as genuine businesses that a consumer has recently dealt with, sending fake invoices with altered payment details so that the money ends up with the scammer,’ she explained.
The impact on older Australians is especially concerning.
Recent data from Scamwatch revealed that individuals aged 65 and over are the most affected by scams online, with losses amounting to nearly a third of all reported cases in the last quarter of 2023.
This represents a 57 per cent increase from the previous quarter, highlighting the vulnerability of our senior community to online threats.
‘Over 16,000 people who reported losing money (in 2023) said it started on a social media platform or an online forum with an ad, a post, or a message,’ Scamwatch stated.
‘Many people reported placing an order, usually after seeing an ad, but never received their goods. Some described advertisements that impersonated real, online retailers.’
Overall, Australians were scammed out of $477 million last year.
The ACCC advised the public to always verify payment details directly with the business, especially before making large transactions.
If you suspect a scam or have already transferred funds, it's imperative to contact your bank and Scamwatch immediately. Time is of the essence in these situations, as early intervention can sometimes lead to the recovery of funds.
However, there is a silver lining: overall losses to scams in Australia decreased in the last quarter of 2023.
Significant drops in cryptocurrency, bank transfer, and investment scam losses were noted. This suggests that awareness and prevention efforts may be starting to pay off.
The average reported loss to scams is still a significant $1,224, with high-cost investment scams contributing to over half of this amount.
Phishing scams, which typically involve deceptive emails, remain the most reported type of scam.
It's crucial to stay informed and protect ourselves and our loved ones from these financial predators. Here are some tips to help stay safe:
1. Always verify the source: If you receive an invoice, mainly via email, confirm the payment details directly with the company using a known and trusted contact method.
2. Be sceptical of unexpected requests: If you're asked to make a payment or provide personal information unexpectedly, take a moment to question the legitimacy of the request.
3. Use secure payment methods: When possible, use secure payment methods that offer fraud protection, and avoid direct bank transfers to accounts you haven't verified.
4. Keep software updated: Ensure your computer and mobile devices have the latest security updates and antivirus software installed.
5. Educate yourself: Stay up-to-date with the latest scam trends by visiting the Scamwatch website and subscribing to their alerts.
Sky News Australia covered a specific case of a payment redirection scam here:
Source: Sky News Australia/YouTube
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