Banks urge small business to stay alert to the risk of scams

Four in five small and medium businesses say they have been exposed to an attempted scam in the past year, according to new research commissioned by the Australian Banking Association.

This Scams Awareness Week, banks are reminding small businesses across the country to take steps to scam proof their operations and protect themselves as well as their customers.

Scams to be on the lookout for:

• Fake invoice scams: A genuine-looking invoice from a supplier you need to pay, however the bank account details are for a scammer.
• Remote access scams: Scammers impersonate tech support, software providers or banks to trick owners into granting remote access to company computers, banking credentials and sensitive business data.
• Business impersonation scams: Criminals impersonate a business, usually attempting to steal money from customers, with the potential to cause significant reputational harm and brand damage.

ABA CEO Simon Birmingham said this was a timely reminder that small businesses were firmly in the sights of scammers and that banks were working around the clock to protect their money.

“Small businesses are a prime target for scammers, with criminals actively looking to exploit vulnerabilities in everyday systems and processes,” Mr Birmingham said.

“Banks are fighting back against scammers who are targeting small businesses. Our research shows 30 per cent of businesses say their bank flagged a suspicious transaction in the last year, while one in five say they are aware of their bank blocking a transaction.

“This Scams Awareness Week, we are encouraging every small business owner to strengthen their safeguards and be alert to the warning signs of a scam.

“Scammers target small businesses because they know owners and staff are flat out managing competing priorities. They will use every trick in the book, from fake invoices to impersonation scams, to exploit a busy moment and steal your hard-earned cash.

“It takes just one convincing fake invoice on a busy afternoon to wipe out a business’s hard work, with smaller operators often hit the hardest.

“A quick 30-second phone call on a trusted number to double-check account details can stop a scammer dead in their tracks and save you thousands.

“Banks are ramping up scam protections across the whole industry with major initiatives like Confirmation of Payee, to help ensure businesses aren’t tricked into paying a scammer. But your best line of defence will always be to Stop, Check and Protect.”