Article written by LGT Crestone Head of IT Risk & Cybersecurity Louise Schuster.

Protecting Your Wealth from Payment Redirection Scams

Recent reports from the Australian Competition and Consumer Commission (ACCC) highlight the growing threat of payment redirection scams, also known as Business Email Compromise (BEC). Alarmingly, Australian businesses lost $91.6 million to these scams in 2023, with one case involving a $190,000 loss due to a hacked supplier email. These sophisticated attacks can target anyone, including high-net-worth individuals and their businesses, making vigilance essential.

What is a payment redirection scam?

A payment redirection scam (also known as Business Email Compromise or BEC) is when a criminal impersonates a business or its employees via an email and asks you to make a payment to an account the criminal controls. The email may be sent from a legitimate business email address that a criminal has accessed. In some instances, your email may have been compromised and a criminal is watching for payment-related emails. The criminals will then send you an email that appears very similar to one you may be expecting, but with the changed account details, in the hope that you will make the payment without checking the change in bank details.

How to avoid this type of scam

• Contact the supplier/client adviser directly using a second, reliable mode of communication such as a known phone number to verify any request to change bank details.
• Consider a multi-person approval process for transactions over a certain dollar threshold with processes in place to ensure the business billing you is the one you normally deal with.
• Prevent your IT systems from being compromised. Keep your IT security up-to-date by regularly patching your systems and running antivirus software, and have a good firewall to protect your data.

For more information on how to recognise and report scams, read the information here.

At LGT Crestone, we prioritise your financial security. If you suspect any irregularities or require guidance on safeguarding your assets, please do not hesitate to contact your adviser directly. Together, we can ensure your wealth remains protected against these increasingly sophisticated scams.