Like many other forms of cybercrime, bill fraud is on the rise, but the good news is that businesses can take steps to prevent this form of fraud, which can hit you and your customers hard.
The invoice scam involves cybercriminals posing as businesses, intercepting emailed invoices, altering bank details, and then stealing invoice amounts from unsuspecting customers. As soon as the money has been deposited into a crook’s bank account, it is often transferred abroad, and the banks and the police then have little authority to do anything to recover the stolen funds. Usually, the customer or company that paid the invoice to the fraudulent account is responsible for the loss because the invoice was not paid to the appropriate organization for the goods or services received.
Bill fraud is a growing problem in Australia and often perpetrated by organized cyber criminals. Australian companies reported more than $ 14 million in losses to the federal government fraud watchdog Scamwatch due to payment redirect scams last year. The average losses as of March 30, 2021 were more than five times higher than the average losses over the same period in 2020. However, the total losses are likely to be much higher as these scams are reported to a range of different organizations and sometimes go unreported at all.