Cybercrime is a serious problem that is rapidly growing worldwide. It is estimated to cost the world economy $600 billion every year. According to a Price Waterhouse Coopers (PwC) survey published in June 2018, one in two businesses reported being victims of economic crime or fraud, based on responses from more than 7,000 organizations globally.
Crime Stoppers NSW is increasing efforts to combat cybercrime to keep Australian small businesses safe. Businesses are increasingly becoming victims of various types of cybercrime, such as cyber fraud and scams. The introduction of this new anti-cybercrime initiative was an important event to inform the Australian small business community that they are not alone in facing such threats.
The estimated cost of BEC in Australia alone is $1 billion per annum.
In the PwC survey, 14% of respondents who considered cybercrime the most disruptive form of crime reported losing $1 million or more. Experts have indicated that approximately 90% of cyber frauds begin with or involve an email.
In that context, Eftsure has partnered with Crime Stoppers NSW to curb cybercrime, focusing on a specific and rapidly growing aspect of cybercrime—Business Email Compromise (BEC). This fast-growing online scam poses a risk to Australian small business owners and overseas businesses.
BEC is a damaging form of cyber fraud that exploits a gap in payment systems, using social engineering to deceive businesses into believing that supplier bank account details have changed. This leads to payments being made into the wrong account, resulting in devastating financial losses that are extremely difficult, if not impossible, to recover.
There are few tools to prevent losses from BEC attacks. However, Eftsure uniquely flags erroneous or fraudulent payments before they’re made, serving as a powerful preventative measure.
Established in 2016 by a team of banking technology and accounting professionals—Mike Kontorovich, Ian Mirels, and Mark Chazan—Eftsure provides specialized technology to businesses to validate the integrity of their payment data, raising an alarm before payments are made into the wrong account. To date, Eftsure has protected over $3.5 billion in payments in Australia.
When running a BEC scam, fraudsters don’t attack a company directly but instead infiltrate its suppliers’ email systems to send what appear to be real invoices to the targeted company. The invoice is sent from a legitimate address and seems to be legitimate, but the bank account details and personal information will have been altered. Since the banking system does not allow for account names to be checked against BSB and account numbers at the time of payment, companies unknowingly make payments to the hacker’s account.
Pre-scam, employees often rely on personal details and bank statements to be correct. A better strategy, as seen in this case, is to avoid sharing unnecessary banking information with co-workers or slowing down the payment process.
“The explosive growth in business payments fraud is fueled by a perfect storm of social engineering, identity fraud, and gaps in payment systems. Businesses aren’t paying who they think they’re paying.”
Eftsure’s CEO, Mike Kontorovich
“No one is immune, from small businesses to large corporations. BEC scams are hitting Australia at an alarming rate. These scams are highly sophisticated, and financial software systems just can’t keep up. Once payment is made into a fraudulent account, it is almost impossible to retrieve,” Mike Kontorovich said.
Eftsure advises business owners to undertake four key measures
Stay up to date on the latest scams and ensure your employees, colleagues, and trading partners are also aware.
Implement security hygiene by never sharing passwords across multiple sites or using weak passwords.
Establish protocols such as separation of duties and independent verification of bank details.
Use new digital tools to enhance payment security, such as fraud prevention and detection tools.
Know Your Payee solution
Eftsure’s “Know Your Payee” technology works with any Australian bank and provides businesses with rich data on suppliers in real-time, raising a red flag if account details are unusual. Leading Australian companies in every major industry, from schools to ASX Top 50 enterprises, have already signed up for Eftsure’s Know Your Payee payments protection service. It’s a small investment that could prevent thousands, if not millions, in losses and offers peace of mind.
Director & CEO for Crime Stoppers (NSW), Mr. Peter Price AM, said, “The extent and growth of cybercrime is staggering, and it is transnational by nature, so in most instances, the perpetrator is offshore. This makes it difficult to investigate, charge, and arrest, then add the complication of extradition.
With all this working against us, the clear opportunity is to equip ourselves better to avoid becoming a victim in the first place. It makes sense for Crime Stoppers to team up with Eftsure, who can help prevent this crime, making businesses safer and owner-operators smarter.”
“The digital world has changed the business landscape. We are solving problems that were historically unsolvable. There is now no need to be okay with the risk and error your company has previously lived with,” added Mike Kontorovich.
Crime Stoppers NSW and Eftsure have embarked on an awareness campaign involving workshops, events, and marketing to prevent BEC cybercrimes before they impact Australian businesses.
By getting in touch with NSW Crime Stoppers with information about any criminal activity that you are aware of in any Australian jurisdiction, you will be of service to law enforcement. Contact Crime Stoppers by a free call in Australia 1800 333 000, 1800 025122, (02) 93846467, or via email.