How to Protect Your Business from Financial Scams and Fraud

Financial scams and fraud are on the rise in Australia, and small businesses are increasingly being targeted. From phishing emails to fake invoices, the impact of falling victim to a scam can be devastating. It can lead to financial loss, damaged reputation, and operational disruption. The good news is that with the right systems and awareness, you can safeguard your business.

Why Small Businesses Are at Risk

Scammers often target small businesses because they may have fewer formal processes and less capacity to detect fraud quickly. Invoices, payroll, and payment systems are common entry points, especially if multiple team members have financial responsibilities.

Types of Common Scams and Fraud

• Phishing Emails: Fake emails that appear to be from legitimate sources, asking for sensitive information.

• Invoice Scams: Fraudulent invoices sent in the hope they will be paid without question.

• Payroll Fraud: False timesheets or unauthorised changes to bank details.

• Identity Theft: Using stolen business details to open accounts or make purchases.

  
  

Practical Steps to Protect Your Business

1. Verify Payment Requests

Always confirm payment details directly with suppliers or clients via telephone, especially if they request a change in bank account details.

2. Train Your Team

Educate staff on recognising scam signs, such as unusual email addresses, urgent payment requests, and spelling errors.

3. Implement Internal Controls

Separate financial duties so no one person handles every stage of a transaction. Introduce approval processes for invoices and payments.

4. Use Secure Systems

Invest in secure, reputable accounting software with multi-factor authentication. Keep your software updated to patch security vulnerabilities.

5. Monitor Bank Accounts Daily

Regularly review transactions for any suspicious activity. Early detection can prevent larger losses.

6. Protect Sensitive Information

Shred physical documents with confidential details and use encrypted channels for sending financial data.

7. Stay Updated on Scam Alerts

Follow updates from the Australian Competition and Consumer Commission’s (ACCC) Scamwatch and the Australian Cyber Security Centre (ACSC) to stay informed on emerging threats.

What to Do If You Suspect Fraud

If you think your business has been targeted:

• Contact your bank immediately to try to stop any unauthorised transactions.

• Report the scam to Scamwatch and the ACSC.

• Review your internal controls to prevent a repeat incident.

How Love Bookkeeping Can Help

At Love Bookkeeping, we regularly undertake team training so we are up to date with the latest scam. We have extra security for our systems, provided by our IT partnership with CIS Brisbane and Practice Protect. By partnering with us, you gain an extra layer of vigilance to safeguard your business.