In 2023 alone, over 600,000 Australians reported scams, with losses exceeding $2.74 billion. Individuals planning their retirement, investors and business owners are particularly at risk, often targeted through too-good-to-be-true investment opportunities or fake fraud report calls. At MBC Group Services, we understand the importance of safeguarding your financial well-being. As scams become increasingly sophisticated, staying informed and vigilant is crucial, so we’ve put together some common red flags you need to keep on top of.
Don’t think that cyber criminals only target metro areas with their schemes. Some recent examples of these scams in regional Australia include the following:
- Agricultural Equipment Scams
Scammers have targeted farmers by advertising non-existent agricultural equipment at attractive prices. Once payment is made, the equipment never arrives, leaving the buyer out of pocket. - Fake Tradie Scams
There has been an increase in fake tradie scams in regional areas. Scammers pose as tradespeople offering low-priced services like driveway repairs or roofing. They often demand payment upfront and either do a substandard job or disappear without completing the work. - Livestock Scams
Scammers have advertised livestock for sale, often at below-market prices. After receiving payment, they fail to deliver the animals, leaving farmers without their money or the livestock they need. - Remote Access Scams
Similar to other areas, scammers posing as IT support target regional businesses and individuals. They convince victims to download remote access software, which can lead to data theft and financial loss.
Common Financial Scams Targeting Small Businesses and Investors
- Phony Invoices
Scammers send fake invoices for products or services never ordered or received, hoping the business will pay without verifying the details. - Unordered Merchandise
Scammers send unordered goods to a business and then demand payment, claiming it was a legitimate order. - Business Email Compromise (BEC)
Scammers hack or spoof email accounts of executives or vendors to trick employees into transferring funds or sharing sensitive information. - Tech Support Scams
Scammers pose as IT support, claiming issues with your computer systems and then charging for unnecessary or non-existent services. - Directory Listing Scams
Scammers offer to list your business in a directory for a fee, but the directory is often fake or has no value. - Credit Card Processing Scams
Scammers promise lower rates for processing credit card transactions but use deceptive contracts with hidden fees. - Loan Scams
Fraudulent lenders offer small business loans with attractive terms but require upfront fees or personal information, which they then misuse.
Five Ways Scammers Lure Investors
- Investment and Crypto Scams
In 2023, Australians lost $1.3 billion to investment scams. Scammers entice victims with low-risk, high-return offers. Victims often realise the scam only when they try to withdraw funds. To avoid this, always verify the company’s license with ASIC and independently confirm their contact details before engaging.
- Money Recovery Scams
After falling victim to an investment scam, clients may be targeted by scammers promising to recover lost funds for a fee, often leading to further losses. Be cautious, especially if you’ve already been scammed. Verify the legitimacy of fund recovery services independently. - Payment Redirection Scams
Weak passwords can lead to compromised business email accounts, allowing scammers to redirect payments to their accounts. Always verify payment instructions directly with a known contact and avoid using contact details provided in suspicious emails. - Remote Access Scams
Scammers pose as familiar organisations to convince clients to share their screens and download remote access software, leading to data theft. Be wary of unsolicited calls requesting remote access. Verify the caller’s identity independently before proceeding.
Simple steps to protect your business and investments
- Verify Invoices and Orders: Always double-check invoices and orders for legitimacy.
- Train Employees: Educate your team on recognising scam tactics and encourage them to verify suspicious communications.
- Secure Communications: Use strong passwords and two-factor authentication to protect email accounts.
- Stay Informed: Keep up-to-date with common scams and share this information with your team and clients.
Stay vigilant and educate your team and your family. Protecting your business and finances from sophisticated scams is your responsibility, however Cyber Wardens provides a great free resource to help protect your business.
