Keep your business safe: know who you’re paying
8 November 2021
This year during Scams Awareness Week, the Australian Banking Association, the Council of Small Business Organisations Australia (COSBOA) and Australian Small Business and Family Enterprise Ombudsman (ASBFEO) are teaming up to encourage small businesses to register for PayID or use BPAY and e-invoicing when paying or receiving payment for invoices to help beat scammers.
Last year, Australians lost more than $850 million to scammers, payment redirection scams hit Australian businesses hard resulting in $128 million in losses.
Services such as PayID, BPay and e-invoicing will show who you’re paying before you pay, ensuring money is going to the intended account.
Scammers can compromise a business’ email by imitating an email account or website, known as ‘spoofing’, sending phishing emails or by using malicious software.
Anna Bligh, Chief Executive Officer at the Australian Banking Association, said while data shows the number of scams continues to rapidly increase, there are some simple steps to ensure businesses and their customers are sending money to the correct account.
“services in Australia such as PayID, BPay and e-invoicing can ensure anyone that they’re paying the correct person, before they send their money”ABA CEO Anna Bligh
“Hundreds of millions of dollars are being lost to scammers every year across the world, however services in Australia such as PayID, BPay and e-invoicing can ensure anyone that they’re paying the correct person, before they send their money,” Ms Bligh said.
“PayID for example is a unique feature that will help prevent scams for individuals and businesses. 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.
“It’s easy to register and it’s easy to use. So far, there are more than 8 million PayID’s registered. These types services are readily available for businesses, and I encourage each and every one of them across Australia to sign up and reduce the chances of being scammed.”
Alexi Boyd, Chief Executive Officer at COSBOA, said no matter how many staff a business has it is incredibly important to be aware of scams and cybersecurity.
“We know that many small business owners feel that they don’t have resources to carefully consider their cybersecurity. Their role in the supply chain with big business and increasing digital engagement with Government makes them vulnerable. Scammers take advantage of this,” she said.
“I encourage each and every one of them across Australia to sign up and reduce the chances of being scammed”COSBOA CEO Alexi Boyd
“It’s easy to register and it’s easy to use. These services are readily available for businesses, and I encourage each and every one of them across Australia to sign up and reduce the chances of being scammed.”
“Using services such as two-step authentication, e-invoicing and double-checking the authenticity of webpage links are easy and simple steps to protect yourself from these very costly – and abhorrent – scams.”
Bruce Billson, Ombudsman at ASBFEO, said it is crucial for every business to stay alert to scams and understand how to protect themselves from cyber criminals.
“One of the most financially harmful scams affecting Australian businesses, including small businesses, is the ‘business email compromise’ scam. 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,” he said.
“If you have staff, talk to them about this scam to make them aware of how it works and what to look for”ASBFEO Ombudsman Bruce Billson
“It is important to know how to protect yourself from business email compromise scams. If you get a request to change your payment details, and you are in doubt at any time, make sure you call to verify the details before making the payment.”
Recent ABA analysis of data showed more than 80 per cent of Australians prefer to pay bills, check account balances or transfer money online. The use of cash is continuing to decline, represented by RBA data showing ATM withdrawals decreasing by 20 per cent in the year to August 2021, after falling 16 per cent in 2020.
“As the 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.
An average of $3.2 billion was lent to small business in the second half of 2021, up 24% from the $2.6 billion in the second half of 2020.
ore than 30 industry leaders addressed the audience throughout the day, deep-diving into the opportunities, digital disruptions, new customer trends and risks that face the banking industry.