If you have ever paid a bill or invoice online, how closely have you checked the details?
The cost of fake invoice scams is rising in Australia, with the Australian Competition and Consumer Commission's (ACCC) Scamwatch service reporting one couple has lost $800,000.
In 2023, Australians reported losing $16.2 million to payment redirection scams, and the money lost per scam appears to be increasing.
Now, the ACCC has issued a warning over fake invoices from scammers impersonating businesses.
Here's what you need to know about invoice scams, and how to protect yourself.
How do invoice scams work?
Payment redirection scams, or invoice scams, are a type of impersonation scam that involve criminals posing as a real business that a consumer has recently dealt with.
The scammers do this by sending customers an invoice with modified payment details, from either the business' compromised email account or through another email address designed to imitate that of the legitimate business.
The ACCC is warning customers about fake invoices. Source: Supplied / ACCC
Victims typically do not realise they have been scammed until the real business contacts them to follow up on the payment.
Who is being targeted by fake invoice scams?
According to the ACCC, fake invoice scams usually target customers of businesses that regularly send invoices for large amounts of money, such as real estate, legal, and construction companies.
Scamwatch has also received reports that customers of travel companies and car dealerships have recently been targeted.
It shared the story of one couple who lost more than $800,000 while finalising a property settlement.
The couple said they were emailed transfer details from their solicitor's email address, but unbeknown to them the bank details were incorrect and the money they transferred went to a scammer.
In a statement, the ACCC said it was also aware of an Australian man who had lost more than $35,000 after scammers compromised the email account of the car dealership he was buying a car from.
"After paying the deposit securely through the dealership’s official website, he received an email with an invoice for the remaining amount owed which he paid thinking it was genuine," the ACCC said.
"When he went to pick up his new car, he found out that the invoice was a scam and the dealership had only received his deposit."
How can you protect yourself against invoice scams?
Before making a large payment online, the ACCC recommends considering who you are dealing with.
To make sure the invoice is legitimate, take the time to call the business you are dealing with to confirm the payment details are correct.
When you call them, make sure you use independently sourced contact details or a number you know is correct; do not just call a phone number listed on the email in case it is that of the scammer.
If something feels wrong, act quickly. If you have transferred money, shared financial information, or other personal details, contact your bank and Scamwatch.
If you have lost money, contact the business or platform you were scammed through and inform them.
