Australian Financial Regulator Warns Small Businesses About to Beware of Scams

The Australian Securities and Investments Commission (ASIC) reminded small businesses to be aware of false billing, investment scams and remote access scams as they can cause serious financial losses to businesses.

In today's environment, small businesses are under pressure from higher inflation, dramatic increases in operating costs and an increase in the number of insolvent companies. Business owners often have limited time and resources, but scammers are deliberately taking advantage of this by using increasingly sophisticated tactics to steal information and money from them.

In the 2022-23 financial year, the average loss suffered by small businesses due to cybercrime reached $46,000 million.

According to the Australian Competition and Consumer Commission (ACCC), Australian businesses reported 4,933 scams in 2023, a 27.9% increase year-on-year. These scams cost businesses $29.5 million, with small businesses enduring $17.3 million in losses.

In addition, fraudulent billing, investment scams and remote access scams caused the most damage, at $22.9 million.

Meanwhile, businesses should also guard against fake invoice scams, phishing scams and impersonation scams.

ASIC advises that when faced with scams, businesses should immediately stop the transaction, contact their bank or payment provider and report the case to Scamwatch and ASIC. Family, friends, employees and customers should also be alerted to the matter.