Aussie bank's incredible move after scammer conned small business out of $900,000

An Aussie small business has been saved from financial ruin after scammers conned them out of $900,000. Fake email invoices have become one of the most popular methods for digital thieves to rob Aussies of their hard-earned cash.

In this latest example, a Victorian business recruited a local supplier for a routine job and when it was finished, they sent the construction company a draft invoice to ensure the amount payable was correct. Everything looked fine, however, when the draft was returned to the small business, a tiny adjustment had been made in the banking details.

"Please ensure payment is made into the above bank details as funds paid into the old account will now bounce which could cause delays," the new invoice said.

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Thinking nothing was amiss, the small business transferred the $900,000 to the banking details provided and waited for the money to go through.

However, the supplier contacted the business and revealed they hadn't received the money.

It was only then that the construction company noticed the details had been changed on the invoice and the money had been siphoned off to a scammer.

The small business quickly called Bendigo Bank to explain what happened and the financial institution was able to claw back $897,083, or 95 per cent, of what had been sent to the digital thief.

“This example highlights the Bank’s strengthened ability to rapidly recover funds, and the importance of acting quickly when something doesn’t look or feel right. That said, prevention is better than the cure, so we urge customers to Stop, Think and Protect,” the bank's head of customer protection Jason Gordon said.

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How do fake email invoice scams work?

Scammers are able to hack into a person's email account and monitor all the incoming and outgoing messages.

They wait until money needs to be exchanged and will intercept an email with an invoice attached and alter the bank details so that the money comes to them.

A person paying the invoice would likely think nothing is wrong because the email came from the same business address that they had likely already been in contact with.

Aussies lost $16.2 million last year to this specific scam and while the number of reports to Scamwatch dropped by 28 per cent, the amount of money lost went up by 3 per cent.

“Scammers are sophisticated criminals and are becoming more targeted in how they exploit Australian consumers and businesses,” ACCC deputy chair Catriona Lowe said.

“This scam is hard to detect because the scammer will either hack into the email system of the business or impersonate the business’ email address by changing as little as one letter."

Aussies are being urged to always double-check the other person's banking details before sending over money, particularly large sums of cash.

The ACCC's advice states:

• STOP – Don’t rush to act. Take the time to call the business you are dealing with – using independently sourced contact details – to check the payment details are correct.

• THINK – Ask yourself if you really know who you are communicating with? Scammers can make invoices appear legitimate by copying logos and ABNs. Scammers can send emails that appear to be from the business you have been dealing with – only changing banking details on invoices.

• PROTECT – Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately.

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How do I protect myself from scammers?

Aussies lost $2.7 billion to scams last year, with 601,000 cons reported to authorities, according to a new report from the Australian Anti Scam Centre.

That's down from a record $3.1 billion the year previous, however, the number of scams reported went up by 18.5 per cent. Over 65s were the hardest hit and only group to take a higher loss in the last year.

Investment scams are the most prolific, with $1.3 billion lost, followed by remote access scams ($256m) and romance scams ($201.1m).

Scamwatch warns to beware of the following scenarios:

• It’s an amazing opportunity to make or save money

• Someone you haven’t met needs your help - and money

• The message contains links or attachments

• You feel pressured to act quickly

• They ask you to pay in an unusual or specific way

• They ask you to set up new accounts or Pay ID

What should I do if I think I’ve been scammed?

Contact your bank and report the scam. Ask them to stop transactions and stop sending any money.

Report the scam to Scamwatch here and make an official complaint to police here.

Watch out for follow up scams, particularly ones promising they can get your money back. Scamwatch warned one in three victims of a scam are scammed more than once.

Lastly, get support for yourself. You can talk to a financial counsellor or reach out to BeyondBlue on 1300 22 4636 or here for an online chat or Lifeline for crisis support online here on 13 11 14.

You can also contact IDCARE to “reduce the harm they experience from the compromise and misuse of their identity information by providing effective response and mitigation”.