Scammers pretend to be businesses

By Natalie Gauld, Managing Editor of Proctor, Queensland Law Society 

Queenslanders are being urged to check payment details directly with a business, including law firms, before paying an emailed invoice, following an increase in losses to payment redirection scams.

The most common industries targeted by this scam are traditionally those that regularly deal with large transfers of money, such as the real estate, legal and construction sectors.

Despite the number of reports to Scamwatch decreasing by 28 per cent, the total amount lost increased by 3 per cent, indicating Australians lost significantly more money per scam last year compared to 2022.

“Scammers are sophisticated criminals and are becoming more targeted in how they exploit Australian consumers and businesses,” ACCC Deputy Chair Catriona Lowe said.

“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.

“This scam is hard to detect because the scammer will either hack into the email system of the business or impersonate the business’ email address by changing as little as one letter.

“If you receive an invoice via email, take the time to call the business on a number you have found yourself to confirm that the payment details are correct."

How the scam works

  • You receive an email from a business you are dealing with and are expecting an invoice from.
  • You pay the invoice thinking that the payment is going to the business.
  • However, you are unaware that scammers have gained access to the business email account or changed the email address and modified the payment details on the invoice (BSB and account number). You make a payment to the scammer instead of the actual business.
  • You are unlikely to notice anything unusual until you receive a demand for payment from the business for an invoice you believe you already paid. 
  • If you respond to the email to query the change to the payment details on the invoice the scammer will respond justifying the change.  

Protect yourself

STOP – Don’t rush to act. Take the time to call the business you are dealing with – using independently sourced contact details – to check the payment details are correct.

THINK – Ask yourself if you really know who you are communicating with? Scammers can make invoices appear legitimate by copying logos and ABNs. Scammers can send emails that appear to be from the business you have been dealing with – only changing banking details on invoices.

PROTECT – Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately. Help others by reporting to Scamwatch.

Report compromised systems to cyber.gov.au

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