A new report by CommBank found that nearly 90 per cent of all scams that have been reported in FY24 came from small businesses.
The data noted that more than half of these losses went to investment scams, which offer fake money-making opportunities, often with the promise of unrealistically high or above-market returns and seemingly coming from legitimate sources. Other prevalent causes of these losses include phishing and business email compromises.
CommBank Executive General Manager Small Business Banking Rebecca Warren said, “If a business owner or leader falls victim to an investment scam, it’s not just the business that could be compromised, but also the jobs of the people who work there.
“We can see through our data that small businesses lose around $30,000 on average to investment scams, which can have a devastating impact, both financially and emotionally. When they make an investment into what they think is a term deposit with a great interest rate, they tend to put in most of the money they have available, to maximise their returns.”
Practise caution
CommBank has reminded its customers to be suspicious of investment opportunities that sound too good to be true.
Warren said, “Investment opportunities that offer high returns with little or no risk are likely fake and coming from a scammer. Be wary of any unsolicited online contact, including people reaching out via social media, sponsored ads or any opportunities endorsed by public figures and popular TV programs.”
Customers are advised to sense-check investment opportunities with friends and family before committing to anything, as well as check reviews online and consult ASIC’s list of companies they should not deal with.
This month is Cybersecurity Awareness Month, and many key organisations are ramping up efforts to combat cybercrime. The Queensland government yesterday announced $15 million towards helping small business fight cybercrime.
