Small businesses hit hard as scammers dupe Aussies out of record $851 million

Scam losses reported by Australian businesses increased by 260% in 2020, with email compromise, phishing, and identity theft the most common according to the ACCC’s Targeting Scams report released this week. Businesses lost $128 million to payment redirection scams alone, in a year that saw the pandemic force more and more people to work from home and rely on technology. In this post, we’ll explain what has happened, how it may affect your company, and provide four tips for what to do next.

In 2020, close to half a million Australian’s reported scams to the government, financial institutions, and authorities, all up we were conned out of $851 million. Men reported higher losses, with women losing money more frequently, while under 45s were less likely to lose money than people aged 45-65+. Email and social networking proved to be the most lucrative markets for scammers, behind phone calls.

Personal data is more at risk than ever before with big increases in phishing activity 75% and identity theft 84%. But what does that mean for businesses? Overall, the largest number of scam reports came from small businesses with less than 20 employees. False billing was the number one complaint costing businesses $18.5 million. These scams typically involve a request for payment for a service or item that wasn’t ordered or a scammer diverting money by impersonating the intended recipient of the payment. For example, false invoices sent from a similar looking company, with matching details such as the invoice number, often stolen and copied. False billing is on the rise increasing roughly 87% in 2020 and is a serious issue for small businesses which can lose thousands of dollars.

Threat based scams increased 140%, the people behind this type of scam usually threaten victims with arrest, deportation, legal action, or the release of stolen information unless money is paid. This can be particularly damaging for businesses if data has been stolen, not only do you have to deal with the scammers themselves but the fallout. If client’s personal information is accessed or stolen your company will need to notify those involved or risk serious penalties.

On the upside loses from ransomware & malware decreased by 53% seemingly thanks in part to greater awareness. The ACCC says it has been actively working with banks and law enforcement agencies to help prevent these types of scams occurring by sharing Scamwatch data and providing scammers’ contact and account details where possible. Fernando Marambio from Blutone Technologies says many businesses don’t know they’ve become a victim until it is too late.

“It can be very difficult to repair the damage inflicted by scammers, often funds or personal information cannot be recovered,” he says.

“Its also extremely difficult for law enforcement or government agencies to identify or bring scammers to justice as most are located overseas”.

Fernando says any business that operates online or over the phone can be impacted, and has these four simple tips to protect your company:

1.   Change passwords, especially email passwords frequently

2.   Enable two factor authentication

3.   Apply a third-party anti-spam software

4.   Train your staff to look out for scams, particularly in relation to invoice processing, there’s even software solutions which can help

If you’re not doing these things or don’t know how please call Blutone Technologies on 1300 660 139. If you’d like to access the full report head to Scamwatch.