How to identify scams and protect your business

When was the last time you received a text promising risk-free returns on a new investment trend? Or a phone call from someone claiming to be from the ATO, or a deceptive link in an official-looking email?

Scams are scary and we’ve all been the regular target of scammers. Although old-fashioned scams with bad spelling and fantastic promises are still around, they’ve been overtaken by a more diverse new breed.

If you’re running a business, just one invoice payment sent to a fraudulent account can cost you or your customers thousands of dollars and lots of heartache.

At Bendigo Bank, we’re here to help keep you and your business safe from scams and to help you to identify when something isn’t right. There are simple, practical, ways you can protect yourself and your business against scams and fraud.

We talk with Jason Gordon, Bendigo Bank’s Head of Customer Protection about the modern scam industry and practical tips to keep your business safe.

The risks are evolving

There’s no doubt scammers today are sophisticated. Although the latest ACCC Targeting Scams report shows a 13 percent decrease in scam losses in 2023 from the previous year, Australians still reported losing $2.74 billion to scammers.

“The behaviour of customers and scammers has changed,” Jason explains. “As new technologies emerge, and more and more transactions take place online, scammers will adapt. That’s because scammers can impersonate people and businesses, using technology like deep-fakes or social engineering.

“Scams are also becoming harder to detect, and businesses are becoming easier to impersonate – all it takes is one small change to an email address or invoice that you will never notice.

“Scammers are capable of exploiting human emotions, including creating a false sense of urgency or the desire to get rich quick,” Jason says.

Jason said business owners should be aware of the following types of scams:

• Business email compromise scams, where scammers intercept and issue fake invoices requesting funds to be sent to fraudulent bank accounts.
• Fake calls designed to obtain personal or financial information.
• Investment scams which promise risk-free returns.
• When scammers deceive people into transferring money to an account controlled by the scammer.
• Remote access scams, where scammers pose as technicians (e.g. NBN workers) and trick victims into downloading malicious software.
• Online shopping scams, including those where the scammer forces the victim to quickly go through with a purchase.
• Threat or blackmail-based scams where the scammer, often impersonating the police or another authority figure, falsely accuses the victim of fraud and asks for money or personal information as a “show of innocence”.

Respond to scams quickly

Falling victim to a scam can be devastating. It’s natural and understandable that some people may not want to share their experience. But, Jason says, sharing is key. Scams can befall anyone, regardless of age or experience with technology.

“Let your bank know if there’s something wrong straight away to have the best chance of recovering your stolen funds. With the internet being what it is, scam funds travel across the globe almost instantly, so it’s very important to act fast to have the best chance of protecting yourself.
“The Customer Protection team at Bendigo Bank closely monitors fraud and works with an industry-wide community of bankers specialising in financial crime and scams. Sharing what we’re all seeing is the only way to go to protect everyone.”

Practical tips and best practice

Jason recommends the following for businesses looking to protect themselves online:

Multi-factor authentication

Enable this on your accounts to add another layer of protection when logging in.

Different passwords

Don’t reuse passwords on your online accounts. Ensure you treat your password securely and don’t let them be accessed by anyone.

Talk to trusted friends and colleagues

If a deal seems dodgy, or a phone call doesn’t feel right, talk to someone you trust like a legitimate financial advisor, friend or a colleague.

Be vigilant

There are three simple steps to remember to keep yourself and your business safe and secure;

• Stop - Don't give money or personal information to anyone if you're unsure.
• Think - Ask yourself, could the message or call be a fake?
• Protect - Act quickly if something feels wrong

Only click links in emails or text messages from sources you trust. If you’re on a website, double-check the URL. If someone asks you for personal details over the phone, take the time to verify their identity. If in doubt, hang up!

No advice is failsafe. For many business owners, every call from an unknown number could be a new customer. Jason’s most important piece of advice is to be mindful.

“Remember; Stop, Think, Protect. Take the time to validate what you’re doing,” he says. “The bank would never call you asking for your account login details and passwords, or to transfer funds.”

The safety of our customers is our top priority. If you think you or your business has been a victim of a scam, call us on 1300 236 344 or visit your local branch as soon as possible.

Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether any product is appropriate for your situation before making a decision to acquire it.

Terms and conditions, fees and charges, and eligibility criteria applies. Credit criteria also applies for Trade Finance products. The Forward Exchange Contract, Foreign Currency Account and Trade Finance products each have a Product Disclosure Statement and Target Market Determination which are available on our website. Please read the applicable product documents including the terms and conditions and, if applicable, the Product Disclosure Statement on our website before acquiring or making a decision about a product.