Four in five SMEs report a scam attempt in the past year, as banks and customer-owned lenders step up consumer and business protections
Australia's banking sector is stepping up its anti-scam messaging this week, with industry bodies representing both major banks and customer-owned institutions calling on small businesses and everyday Australians to sharpen their vigilance against fraud.
New research commissioned by the Australian Banking Association (ABA) found that four in five small and medium enterprises reported exposure to a scam attempt in the past year.
The Customer Owned Banking Association (COBA) is also using the week to reinforce its members' ongoing investment in anti-scam infrastructure and community education.
Small businesses in scammers' sights
The ABA has identified three scam types posing particular risk to small operators: fake invoice scams, in which fraudulent payment details are substituted for those of a legitimate supplier; remote access scams, where criminals pose as technical support or financial institutions to gain access to business systems; and business impersonation scams, which can inflict reputational as well as financial damage.
"Small businesses are a prime target for scammers, with criminals actively looking to exploit vulnerabilities in everyday systems and processes," said Simon Birmingham (pictured right), chief executive of the Australian Banking Association. "Banks are fighting back against scammers who are targeting small businesses.
"Our research shows 30% of businesses say their bank flagged a suspicious transaction in the last year, while one in five say they are aware of their bank blocking a transaction."
Birmingham urged every small business owner to strengthen their safeguards during Scams Awareness Week and remain alert to warning signs, noting that scammers deliberately targeted businesses because owners and staff were often occupied managing competing demands.
He warned that a single fraudulent invoice on a busy afternoon could erase a business's hard work, with smaller operators typically bearing the greatest impact. He said a brief call to a supplier on a known, trusted number to verify account details could be enough to stop a scam and save thousands of dollars.
"Banks are ramping up scam protections across the whole industry with major initiatives like Confirmation of Payee, to help ensure businesses aren't tricked into paying a scammer," Birmingham said. "But your best line of defence will always be to Stop, Check and Protect."
Customer-owned banks lean on local ties
All COBA member institutions became signatories to the banking industry's Scam-Safe Accord in November 2023. Since then, the sector has continued building out anti-scam capabilities, including data-sharing arrangements and detection technologies.
"Our sector is committed to protecting Australians and is working tirelessly to strengthen scam protections," said Michael Lawrence (pictured right), chief executive of the Customer Owned Banking Association.
"Scams have a devastating impact on the people and communities our sector serves. Behind every dollar lost is a heartbreaking story, and these losses can ripple through entire towns, affecting local businesses, families, community investment and jobs.
"Strong local connections mean customer-owned banks are often well placed to notice subtle changes in behaviour and step in early when something appears unusual. Customer-owned banks also have a long-standing commitment to educating their customers and meeting people where they are. Through in-person education and local scam-awareness events, they are helping everyday Australians build the practical tools, knowledge and confidence to stay safe."
Several COBA members are hosting free community sessions during the week. The Mutual Bank in Maitland, NSW, is holding a morning forum on tomorrow, 26 August, at Easts Leisure and Golf Club in East Maitland. Hume Bank in Albury is running an evening session for residents and business owners on Thursday, 27 August, from 5:30pm at its Olive Street branch. Bank Orange will hold its annual community safety forum on Monday 7 September from 5:30 pm at the Orange Ex-Services Club.
The National Anti-Scam Centre advises Australians to Stop — withhold money or personal information when in doubt; Check — question whether a message or request could be fraudulent; and Protect — report suspected scams to Scamwatch promptly.
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