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."
The consequences can be severe, often resulting in financial losses
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.