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The number of small businesses being hit with email scams has increased 57 per cent over the last year, new research has found.
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Business email scams rise 57% year-on-year
09 November 2021
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11 minute read
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According to Westpac data released this week, customers have lost an average of $4.4 million in total each month due to scammers targeting businesses’ emails.
Business email scams occur when fraudsters trick unsuspecting victims into sending money by impersonating a business, employee, or supplier, the big four bank explained.
“Often businesses are most affected, however these scams can impact anyone throughout the supply chain – for example, by intercepting emails and sending false invoices for goods or services someone is expecting,” Westpac said.
Westpac head of fraud, Ben Young, said the data demonstrates how essential it is for businesses to have proper protection measures in place.
“Businesses are often targeted because they manage large invoices and transact with lots of different suppliers, customers and employees,” he said.
“This means the impact of these scams [is] unfortunately significant, affecting both the person sending the money as well as the business or customer that was rightfully owed the funds.”
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Mr Young noted that despite the recent spike in scams, features like PayID remain significantly under-utilised among business customers, “even though it considerably reduces the risk of being scammed”.
“Through PayID, customers can link payee details to their ABN, providing peace of mind that funds are being sent to a legitimate account. It takes minutes to set up and could save businesses thousands,” Mr Young explained.
The latest Westpac data follows similar research conducted by Xero, but on fraudulent invoices.
According to Xero’s latest survey, also released this week, one in five SMEs have been targeted with fraudulent invoices, experiencing an average loss of $15,467.
“As we continue on a path to economic recovery, it’s important businesses have the right measures in place to protect and enhance their financial wellbeing,” said Joseph Lyons, managing director, Xero Australia and Asia.
“Emerging tools like e-invoicing have the potential to create a safer and more effective way to manage invoices and bills, now and into the future.”
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