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The incident, which nearly cost the company $938,600, underscores the bank’s commitment to safeguarding its customers against fraudulent activities.
Last month, the construction company, a Bendigo Bank business client, was targeted by a sophisticated scam.
The company’s ordeal began when it engaged a local supplier for a routine job. Upon completion, the supplier sent draft invoices via email for verification.
Shortly after, an invoice reflecting the agreed amount was received, but with a critical difference: it included new banking details and a message indicating a change.
The message read: “Please ensure payment is made into the above bank details as funds paid into the old account will now bounce which could cause delays.”
Given that the invoice came from the supplier’s legitimate email account and was signed by the supplier’s director, it appeared authentic.
Consequently, the construction company proceeded to make the payment, believing it was fulfilling its obligation to the vendor.
However, the payment did not reach the intended recipient. Instead, it was redirected to a criminal who had allegedly compromised the supplier’s email account.
The scammer had altered the banking details to divert the funds into a fraudulent account.
The genuine supplier, remaining vigilant, noticed the missing payment and contacted the construction company.
This communication revealed the discrepancy in the account details between the real and fake invoices, ultimately exposing the scam.
However, swift action from both parties involved ensured that the fraudulent transaction was stopped before the funds were permanently lost. According to Bendigo Bank, the customer protection team was able to recover $897,083, over 95 per cent of what was paid.
Jason Gordon, head of customer protection at Bendigo Bank, commented: “In the financial year ending 30 June 2023, Bendigo Bank stopped $38.6 million in fraudulent transactions or around $105,000 per day, and this is just one occasion where we were able to stop a scam in its tracks.
“This example highlights the bank’s strengthened ability to rapidly recover funds, and the importance of acting quickly when something doesn’t look or feel right. That said, prevention is better than the cure, so we urge customers to stop, think, and protect.
“These scams so often start with vulnerabilities in email providers’ security controls that can be exploited by criminals. Bendigo Bank advocates for a true cross-sector approach to scams prevention, with a focus on controls and improvements at the origination of a scam, to stop it happening in the first place,” Gordon said.
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