Although the end-of-year holiday period is meant to be a time for goodwill and generosity, it also offers opportunities for fraudsters. Last year, scammers were the most active in October and November, with Scamwatch receiving about 50,000 reports of scams in these two months.
Continue reading to find out how to prevent your business falling victim to a scam or fraud this festive season.
December 30, 2023
Although the end-of-year holiday period is meant to be a time for goodwill and generosity, it also offers opportunities for fraudsters. Last year, scammers were the most active in October and November, with Scamwatch receiving about 50,000 reports of scams in these two months.
Continue reading to find out how to prevent your business falling victim to a scam or fraud this festive season.
Up to September of this year, Australians reported almost $400 million in losses to Scamwatch. The Australian Communications Consumer Action Network (ACCAN) said it anticipates a sharp increase in criminal activity during the 2023 holiday season.
Online scams are particularly rife at this time of year. Cyber criminals often create fake websites that closely resemble the online stores of major retailers. Scammers may also send fraudulent texts about delayed or undelivered parcels in an attempt to extort payments or obtain sensitive information.
Companies may fall victim to this type of consumer scam when making seasonal purchases as gifts for customers or employees, but there are also other specific scams targeting businesses.
During busy periods, businesses may face scams involving unusually large or late-night transactions, changes in delivery addresses, or orders for atypical items. Scammers exploit the high activity and potential lapses in vigilance to place fraudulent orders, often using stolen credit card details. Without proper verification, businesses risk delivering goods to scammers, resulting in significant financial losses. It’s important for businesses to maintain strict verification processes, especially for large, unusual, or altered orders, to avoid falling victim to such scams.
Other abnormal transactions which may raise a red flag include:
While you may be vigilant, there’s no guarantee that all your customers practise the same level of caution. Cyber criminals could gain access to a customer’s computer system, usually as a result of deficient password security, and then place orders with you using your customer’s credit facility. This kind of fraud can be prevented by using multi-factor authentication.
Not every fraud is the work of a practised scammer. While many refund requests are from customers who genuinely didn’t receive their goods, or whose package arrived damaged, there will always be a few who make false claims to avoid payment or have their money returned.
All refunds should be checked against the original sale to make sure they correspond. Ask for photographs as an indication of any damage. Check with your drivers or courier companies for proof of delivery, again preferably accompanied by a photograph of the goods or package at the designated destination.
Refunds against purchases made with a credit card should always be processed using the same credit card details, not with cash, a bank transfer or a different card.
No matter the time of year, your broker is always available to assist you with financial matters. Whether you’re considering financing an upgrade to your anti-fraud system or planning any projects for the upcoming year, our team is here to help. We’re always ready to explore and discuss the best financing options tailored to your needs.
This information is for general information purposes only. The information contained herein does not constitute financial or professional advice or a recommendation. It has not been prepared with reference to your financial circumstances or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice as to whether or not this information is appropriate for you.
For personalised service, the very best financial products and exceptional customer service where you really matter, look no further than the professional team at Mainland Finance
Contact Us