Scams present a significant issue in Australia and their impact isn't limited to individuals alone. Small to medium enterprises (SMEs) are increasingly falling prey to scams, with devastating financial consequences.

In the last financial year, the ACCC reported nearly 94,000 cybercrime incidents, reflecting a 23% increase from the previous year and resulting in approximately one report every six minutes. Moreover, the average cost of cybercrime per report rose by 14%, with small businesses facing an average cost of $46,000, medium businesses at $97,200, and large businesses at $71,600.

This year's Scams Awareness Week, taking place from Monday, November 27, to Friday, December 1, 2023, is focused on 'impersonation scams.' These scams pose a significant threat to SMEs, making it imperative to stay informed and vigilant. Here are some common impersonation scams that can impact your business: 

1. Business Email Compromise (BEC) 

BEC scams target businesses by impersonating executives or trusted contacts. Scammers may request fraudulent wire transfers or sensitive information, leading to substantial financial losses.

2. Phishing Attacks 

Phishing emails and websites mimic legitimate business communications to trick employees and customers into revealing sensitive data, login credentials or tricking customers into purchasing goods. SMEs are often the primary targets due to weaker cybersecurity measures. 

3. Supplier Scams 

Scammers impersonate trusted suppliers or service providers, requesting payment for fictitious invoices. This can result in unauthoriszed fund transfers and disrupted business operations. 

4. Fake Job Listings 

SMEs looking to hire employees can be vulnerable to fake job listings, leading to identity theft, unauthoriszed access to sensitive data, or financial losses. 

5. Tech Support Scams 

Tech support scams can affect both SMEs and individuals. Fraudsters pose as technical support personnel, gaining remote access to computers and compromising sensitive business information. 

How to safeguard against scams 

Scams pose a significant threat to SMEs, but awareness and proactive measures can protect your business and finances. By staying informed and fostering a culture of vigilance within your organisation, you can reduce the risk of falling victim to scams.  

To safeguard your SME from scams, it's crucial to: 

Educate Your Team: Train employees to recognise and report suspicious activity, emphasising the importance of verifying requests for payments or sensitive information. 

Implement Robust Cybersecurity: Strengthen your business's cybersecurity measures, including email filtering, multi-factor authentication, and regular software updates. 

Verify Contacts: Always verify the authenticity of requests for payments or sensitive information, especially if they appear unusual or unexpected. 

Stay Informed: Keep up-to-date with the latest scam trends and educate your team accordingly. 

Report Incidents: Promptly report any suspicious activity to relevant authorities and your bank to mitigate potential losses. 

Visit DIF On Demand for a broad selection of cybersecurity-focused content. 

What help is available? 

Help is at hand with the new National Anti-Scam Centre hosted by the ACCC.  

Head to https://www.scamwatch.gov.au/ to learn more about scams and reporting them. 

Also, you can refer to The Little Black Book of Scams – it is recognised internationally as an important tool for consumers and SMEs to learn about scams.