Why you should check details before paying bills
RACQ Bank wants to warn members about a common scam known as a Business Email Compromise (BEC) scam, in which scammers alter an invoice that is sent via email.
A BEC scam involves scammers intercepting legitimate business emails, altering payment details, and deceiving recipients into transferring funds to fraudulent accounts.
RACQ Manager Financial Crimes Taleesha Hamilton said a BEC scam typically unfolded when an invoice was received from what appeared to be a genuine email from a known business contact, such as a tradesperson or service provider, requesting payment.
“The recipient will be unaware the email has been tampered with, redirecting funds to accounts controlled by scammers instead of the intended recipient,” Ms Hamilton said.
In one recent case, an RACQ member paid over $7,000 after receiving an invoice via email. Weeks later, the company contacted the member to advise they had not received payment.
Investigations revealed the email had been compromised.
“It was discovered that the initial email had been intercepted and bank details amended to those of a scammer,” Ms Hamilton said.
“This company later discovered that scammers had intercepted multiple emails to their clients."
Ms Hamilton said BEC scams could occur through various methods, including phishing emails that tricked a company's staff into divulging sensitive information or clicking on malicious links, allowing scammers access to alter invoices.
“The consequences can be severe, often resulting in financial losses and legal disputes over liability between the business and the customer,” she said.
“As there are no sound rulings regarding who is liable for the email compromise taking place and due to the civil nature of the dispute, these incidents may need to be resolved in the Queensland Civil and Administrative Tribunal (QCAT).”
Ms Hamilton said while these incidents were complex and legally ambiguous, members could protect themselves by verifying payment details with the business before transferring any funds.
“Simply contacting the business can confirm the authenticity of the invoice and the correct payment details," she said. "This simple step will prevent you from falling victim to these scams.
“Members are urged to stay informed and exercise caution when conducting financial transactions online.”
Ms Hamilton said anyone who suspected they may have fallen victim to a BEC scam should contact their financial institution immediately for assistance.
Related topics
-
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.