The Australian Competition and Consumer Commission (ACCC) has reported a rise in fake invoice scams, with losses exceeding $16 million in Australia due to payment redirection scams. Scammers are targeting customers of businesses with large invoices, such as real estate ,construction, small builders and small business leading to significant losses. For example, one couple lost $800,000 in a property settlement scam.
So, how do these scams work?
Scammers trick customers by sending them an invoice with modified payment details, ( BSB and Account No ) either from the business’ compromised email account or through another email address designed to imitate that of the legitimate business. The victim receives the fake invoice and makes a payment to the scammer using the incorrect BSB and Account Number, instead of the genuine BSB and Account Number. Victims typically do not realise they have been scammed until the real business contacts them to follow up on the payment which can be days or weeks later. This time frame means it will be unlikely you will get your money back.
To avoid falling victim to these scams, it is important to verify payment details by calling the business using independently sourced contact details and confirming the BSB and Account Number.
If you suspect fraud, contact your bank and Scamwatch immediately. Stay vigilant and protect yourself from these scams and again confirm payment details before making the bank transfer.