Have you thought about what could happen if someone was able to change the banking details of suppliers on your accounting system?
This is exactly what happened in a Queensland franchise late last year. Cyber crooks were able to infiltrate the accounting program of a branch of Totally Workwear, and change the BSB and account numbers of several suppliers.
You can imagine the result – the scammers were able to redirect substantial sums of money (around $76,000) to accounts they were using.
According to a SmartCompany report, the banks had difficulty tracing the funds. The business’s director placed some responsibility on the banks, suggesting that their ID-checking systems might be inadequate.
However, the issue is also that the fraudsters were able to hack into the company’s accounts program. The business’s IT provider has since been developing a system where a notification pops up if changes are made to bank accounts. This feature also already exists within some popular cloud accounting programs.
What other preventative measures are there?
When processing payments, most of us would probably not have the time to double check banking details. But this case does highlight the need to be vigilant about cyber crime. This includes ramping up online security, regularly changing passwords, and learning how to recognise cyber threats, particularly email phishing scams. With the arrival of real-time payments this becomes more important than ever.
Making sure your insurance is up-to-date is also a part of your risk management. In this case, the company was able to recover around 85% of the lost funds through their insurance policy.