Scamwatch reports that Australian businesses have been hit hard by sophisticated email scams that have led to millions of dollars in losses.
One of the most common scams is impersonation emails, where the scammers pretend to be payment recipients. They then request BSB and account number changes, in the process attempting to redirect payments to themselves.
Scamwatch says small businesses are the biggest target of these scams. However, it also says that any organisation that uses online money transfers is vulnerable – even sports clubs and community groups.
Tightening up procedures can help prevent these scams. This includes having dual authorisations for payments, and strong verification procedures for any requests to change bank details. Employees should be trained in identifying scams.
Insurance can also provide a level of financial protection, so it’s important to keep your policies current. Speak to your local Reliance Partner if you are not sure about your cover for these types of events.