When Kate received an email that appeared to be from a business supplier asking for a $118,000 payment to be directed to a new bank account, she didn’t think anything of it.
Previous emails from the supplier had been legitimate. This one, however, was not.
A new scam impersonates legitimate business emails to target victims. Yuliya Taba
Kate, who works for a family business which sells furniture in Melbourne’s Bayside area, had become the latest target of a “business email compromise” scam which has been operating nationwide.
The scammers are able to impersonate business emails to insert themselves into existing email conversations.
In Kate’s case, from August 25 to September 5, she had received several legitimate emails from a business supplier to organise shipping of outdoor furniture items for $118,000.
Then, from September 7 to September 25, hackers intercepted the same email thread and impersonated the supplier, emailing Kate to say the bank account information had changed.
The hackers then pressured Kate into making the payment, claiming it was urgent, and Kate complied.
Kate was then alerted to the potential fraud by her bank, which then led her to contacting her supplier on the phone, who revealed the emails did not originate from them.
“I felt completely sick when I realised I’d been scammed. It had never happened to me before,” Kate said.
She reported the scam immediately to police via ReportCyber and contacted the bank, but the latter were unable to recall the money.
Luckily, Victoria Police with support from Australian Federal Police were able to block the funds and return the money.
“I thought I’d lost the money for good and it would’ve had such a devastating impact on our small business,” Kate said.
“It was a huge relief the police were able to help and get the money back for me.”
Kate’s mishap was not an isolated police.
Just in Victoria, police have received 107 reports of this scam since July.
“These scammers are impersonating legitimate businesses and suppliers, contacting clients via email to manipulate them into redirecting genuine payments straight into fraudulent accounts,” Cybercrime Squad Detective Sergeant Dean Waters said.
Suspected hacks should be reported immediately, police say. Getty Images/iStockphoto
“They then pressure the victims by creating a false sense of urgency and claiming payments must be made immediately.”
He said anybody who received an unexpected email demand for immediate payment, event if it appeared to be from a legitimate source, should contact the business in question by phone to check it.
“If you’ve sent money or banking details to a scammer, contact your bank immediately,” Waters said.
“If you’ve been targeted, we encourage you to make a report to police. The more we know, the more it can help us identify offenders, disrupt their activities and stop others from also falling victim.”
More information and advice about this scam can be found online by visiting the Scamwatch website.