How can Australians Protect Themselves from Spoofing?

When you pay a supplier or service provider, are you certain you’re paying the right account? That could be spoofing. You’ve got to be super careful these days, as scammers are compromising inboxes and requesting payments to a new account. Here’s how to protect your business and its customers.

It’s Scams Awareness Week 2021, and over the past year scams have hit Australian businesses hard, resulting in $128 million in losses.

And as alarming as that is, one-third of people who are scammed never tell anyone, so the true numbers are probably much higher.

Today, we introduce you to “spoofing,” investment scams, and how to keep yourself safe with the latest cybersecurity and scam threats.

So what scam is catching out Australian businesses this year?

Perhaps the most dangerous scam this year is “spoofing”, which involves scammers compromising a business’s email correspondence by imitating either your, or your customer’s, email account or website.

The scammers then email you, or your customers, requesting that payments be made to a new account for all future invoices.

The unsuspecting business or customer then makes the payment – in this example $10,000 – not realising they’ve paid the scammers. This not only costs the victim money, but disrupts business cash flow and operations too.

How to Protect Yourself From Spoofing?

While spoofing is on the rise, there are some simple steps you can take to make sure your business and its customers are sending money to the correct account.

“If you have staff, talk to them about this scam to make them aware of how it works and what to look for if they are targeted,” warns small business ombudsman Bruce Billson.

Small businesses are also being encouraged to register for PayID, use BPAY, or implement e-invoicing when paying or receiving payment for invoices to help beat scammers.

That’s because these payment services will show who you’re paying before you pay, ensuring money is going to the intended account.

“PayID for example is a unique feature that will help prevent scams for individuals and businesses,” explains Australian Banking Association CEO Anna Bligh.

“Unlike paying to a BSB and account number, PayID gives the user the ability to confirm the name of the account holder before you transfer your funds.”

And the good news is that PayID is easy to register for and use.

So far, there are more than 8 million PayID’s registered across Australia, many of which are for businesses.

“As banking becomes more digitalised, no longer do customers prefer to sign a cheque or pay with cash. As a result, we all need to be more cautious about scammers and utilise services that ensure our money is being sent to the right business or individual,” Ms Bligh said.

So, Australians can be protect themselves from spoofing with the usage of PayID as a primary strategy. It will keep you safe against this grave threat.

Other steps you can take to protect your business from spoofing:

Other steps to protect your business from scammers are to use services such as two-step authentication where possible, and double-check the authenticity of webpage links before you click.

“These are easy and simple steps to protect yourself from these very costly and abhorrent scams,” says Alexi Boyd, Chief Executive Officer at the Council of Small Business Organisations Australia.

And last but not least, if you ever have any doubts about whether you’re making a payment to the right account, or if you receive a request to change payment account information, simply pick up the phone and speak to your contact at that organisation.

Finance Scams That Are Also Hurting Your Buisness?

Apart from spoofing being one of the newer scams hitting Australian buisnesss, finance scams are not far behind ruining Australian’s lives. They prey upon the inner greed of Australians (how many times have you heard that some investment will double your money) and lack of knowledge of the market. Scamwatch has given a common guide for investment. These scams can include the following:

1.  Cryptocurrency scams: Cryptocurrencies are digital currencies. Bitcoin is the most well-known form of digital currency. In Australia, cryptocurrency is not treated as ‘money’ or a ‘financial product’ and you have less protection if you invest and it turns out be a scam or you lose a lot of money. It is very difficult to identify legitimate cryptocurrency investments from scams. Scammers take advantage of the hype and the less regulated environment to ‘invest’ in Bitcoin or another cryptocurrency on your behalf
2. Ponzi schemes: Ponzi schemes are scams that use funds collected from new investors to pay existing investors. No real investment exists and eventually these schemes collapse. Scammers contact people on social media and asking them to download or invest through apps. They promise you will see high returns very quickly and you will think you do, but the scammer uses money other people have invested to pay you some return. Once you have seen a return, the scammer will persuade you to encourage your friends, family and colleagues to invest in the same scheme. They will pay them ‘returns’ and ask them to recruit people they know into the scheme as well. Eventually, when the scammer runs out of money or the pool of people being recruited dries up, the scammer will disappear and no one will be able to recover their money.
3. Investment seminars Scams: Investment seminars may be promoted by promising motivational speakers, investment experts, or self-made millionaires who will give you expert advice on investing, with the purpose of convincing you into following high risk investment strategies. These strategies may include borrowing large sums of money to buy property, or investments that involve lending money on a no security basis or other risky terms.
4. Superannuation Scams: Superannuation scams offer to give you early access to your super fund, often through a self-managed super fund or for a fee. The offer may come from a scammer posing as a financial adviser. The scammer may ask you to agree to a story to ensure the early release of your money and then, acting as your financial adviser, they will deceive your superannuation company into paying out your super benefits directly to them. Once they have your money, the scammer may take large ‘fees’ out of the released fund or leave you with nothing at all.
5. Celebrity Endorsement Scams: Scammers use the image, name and personal characteristics of well-known celebrities without their permission, to entice you into investing. Fake celebrity endorsements are often used to advertise scam cryptocurrency schemes.

What are the Common Charectersitics of Any Scam?

With many of the scams, booth spoothing or investment scams, there is the charecteristics of any scam that should hit a red flag. This has the following:

1. Promise of low risks with high returns: Any unrealistic outcomes or “too good to be true,” such as very high investment returns, rare products as a discount, is one of the best red flags to find.
2. High Pressure/Boiler Plate Strategy: When talking to a scammer, they will insist on you to close a deal/ make any commitments there are now. Remember, if the deal is so good, you should be able to wait for it.
3. Your Contacted Out of the Blue: If you’re cold contacted for investment pitches or personal help, and you don’t know the person, it’s likely a scam.

If you see any of these things, chances are your gut is right. Remember to stay cautious in the holdiays.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.