Australian businesses reported over 5,800 scams in 2018, with losses exceeding $7.2 million, according to new data released by the Australian Competition and Consumer Commission (ACCC).
This data represents a 53% increase compared to 2017, with much of the increase coming from the $3.8 million lost to sophisticated 'business email compromise' scams. When combined with losses recorded by the Australian Cybercrime Online Reporting Network, these scams cost Australian businesses over $60 million.
ACCC deputy chair, Mick Keogh, said that extensive scams that are carried out for a long period of time can force small and medium businesses to close.
"Scammers are hacking business email systems and impersonating the intended payment recipient. The scammers request changes to bank account details so that the business makes the payment to the scammer instead of the legitimate business.
"Depending on how long the scammers get away with this and how large the transfers are, this scam can be devastating to a business’s bottom line – to the extent of forcing small and medium businesses into closure," he said.
According to the ACCC, any business which transfers money via bank accounts is a potential target, with small businesses with fewer than 20 staff more likely to fall victim to attacks, with small businesses accounting for more than 75% of the reports. Local sporting clubs, community groups, payments to conveyancers, real estate agents or law firms have also been targets.
Businesses were most likely to recieve false billing scams – 1819 reports – but investment, hacking and phishing scams also caused losses.
Keogh said that businesses can help to keep themselves safe if they inform staff of current scams.
"Australian businesses must protect themselves by ensuring their staff are aware of these scams so they can identify and avoid them.
"Every business should have clear processes for transferring money and a procedure for verifying requests to change bank account details that uses multiple modes of communication."