Australian businesses lost $227 million to payment redirection scams in 2021, according to the ACCC’s latest Targeting Scams report.
That figure was a 77% increase compared to 2020.
The report compiles data from Scamwatch, ReportCyber, major banks and money remitters, and other government agencies.
It shows that payment redirection scams, also known as business email compromise, were the most financially damaging scams for Australian businesses in 2021.
In a payment redirection scam, scammers impersonate a business or its employees via email and request an upcoming payment be redirected to a fraudulent account.
“Scamwatch data shows that small and micro businesses lost the most money to scams last year,” ACCC Deputy Chair Mick Keogh said.
“The most common contact method scammers used against businesses was email, which is not surprising given the prevalence of payment redirection scams.”
“We would like to see overseas initiatives such as confirmation of payee implemented in Australia, where banks automatically check to see if account name and account numbers match. We believe it may reduce the losses to scams that we are seeing,” Keogh said.
Based on Scamwatch data alone, false billing scams, which include payment redirection scams, had the highest losses with $6.7 million.
Businesses that are the victims of a cybercrime, such as payment redirection scams or ransomware, should report the incident to ReportCyber as soon as possible.
ReportCyber is run by the Australian Cyber Security Centre and passes reports to law enforcement agencies for assessment and intelligence purposes.
“It is so important for businesses to be alert to scams, and to do some extra checks so you can be confident you know who you’re dealing with," Keogh said.
