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 have been victims of economic crime or fraud, based on responses from over 7,000 organizations globally.
Crime Stoppers NSW is increasing efforts to combat cybercrime to keep Australian small businesses safe. Many businesses are 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 reassure the Australian small business community that they are not alone in facing these 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 had lost $1 million or more. Experts report that approximately 90% of cyber frauds begin with or involve an email.
Eftsure has partnered with Crime Stoppers NSW to curb cybercrime, focusing on the fast-growing threat of Business Email Compromise (BEC). This online scam puts Australian small business owners and overseas businesses at risk. BEC is a damaging form of cyber fraud that exploits gaps in payment systems, using social engineering to deceive businesses into believing supplier bank account details have changed, leading to payments being made into incorrect accounts. The financial loss is devastating and often impossible to recover.
There are few tools to prevent losses from BEC attacks. However, Eftsure, which can flag erroneous or fraudulent payments before they're made, is a powerful preventative measure. Established in 2016 by banking technology and accounting professionals Mike Kontorovich, Ian Mirels, and Mark Chazan, Eftsure provides technology to validate payment data integrity, raising alarms before payments are made into wrong accounts. To date, Eftsure has protected over $3.5 billion in payments in Australia.
Fraudsters running a BEC scam don't attack a company directly but infiltrate its suppliers' email systems to send what appear to be legitimate invoices. These invoices come from legitimate addresses but with altered bank account details. Because the banking system doesn't verify account names against BSB and account numbers at payment time, companies unknowingly make payments to hackers' accounts.
“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 can’t keep up. Once payment is made into a fraudulent account, it is almost impossible to retrieve,” said Mike Kontorovich.
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 payments security, such as fraud prevention and detection tools.
Know Your Payee solution
Eftsure’s “Know Your Payee” technology works with any Australian bank, providing businesses with real-time supplier data, raising a red flag if account details are unusual. Leading Australian companies across various industries have signed up for Eftsure’s Know Your Payee payments protection service. It’s a small investment that could prevent significant 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, making it difficult to investigate, charge, and arrest perpetrators, who are often offshore. The clear opportunity is to equip ourselves better to avoid becoming victims. 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 accept the risk and error your company has previously lived with,” added Mike Kontorovich.
Crime Stoppers NSW and Eftsure have launched an awareness campaign involving workshops, events, and marketing to prevent BEC cybercrimes from impacting Australian businesses.
By contacting NSW Crime Stoppers with information about any criminal activity in any Australian jurisdiction, you will assist law enforcement. Contact Crime Stoppers by a free call in Australia at 1800 333 000, 1800 025122, (02) 93846467, or via email.
