ANZ warns of rising payment redirection scams

ANZ has warned customers about the risks of business email compromise and fake invoice scams, commonly known as payment redirection scams.

“Scammers use increasingly sophisticated and use targeted methods to exploit Australian consumers who are trying to pay legitimate businesses for goods or services,” said Ruth Talalla, ANZ scams portfolio lead. “It can be easy to miss a minor change to an invoice or email and pay a scammer instead of the intended business or person.

“It’s important to remember to check invoice details with the person or company you want to pay before submitting payments, especially for first time payments or when their account details seem to have changed. It’s preferable to use PayID for payments when that’s an option, so you know who you’re paying.”

According to the Australian Competition and Consumer Commission’s (ACCC) Targeting Scams report, Australians reported combined losses of $91.6 million to payment redirection scams in 2023, with small- and medium-sized businesses being the most common targets due to their relatively simpler systems, which are easier for cybercriminals to infiltrate.

ANZ provided the following advice to spot payment redirection scams:

• Unexpected contact method or requests: Be wary if someone you do not usually have email or social media messaging contact with reaches out with a personal or payment request.
• Modified payment details on an invoice: Check payment details against previous invoices from that business and question any changes directly with the company or individual you are paying.
• Dodgy domains: Cybercriminals often use email domains that closely resemble the legitimate sender’s. Compare the email to the company’s domain online to verify its authenticity.
• Poorly written text or inconsistent message formats: Look for grammatical or spelling errors and anything in the tone that does not match the sender’s usual style.
• Missing or faked email signature: Cybercriminals often lack the legitimate company’s or individual’s email signature. Check for any inconsistencies.

To avoid these scams, ANZ listed the following tips:

• Never call the phone number given in a suspicious email or message. Use a phone number you sourced independently and speak to the person you have previously dealt with.
• Verify new or updated account details with the legitimate company using an independently sourced phone number before sending funds.
• Do not rush if an email or message creates a sense of urgency.
• Use PayID for payments when available.
• When intending to pay a large amount, send a small amount first and check that the legitimate company or individual received it before sending a larger amount.

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