Aussie businesses lost $3.8 million to online scams, ACCC reveals

internet scam — A South Korean surfs an Internet site at an Internet cafe in Seoul Reuters/You Sung-ho

Australian businesses lost as much as $3.8 million to online hackers in 2016. The number indicated a 31 percent increase from the past year despite awareness campaigns about online scam artists.

Based on a report from the Australian Competition and Consumer Commission’s Targeting Scams, which was released Friday, almost 6,000 Aussie businesses reported being targeted by scams last year. The country’s competition watchdog said over 6,000 businesses fell victim to online scams in 2016.

The report shows cons that rank in the highest amounts include fake investment schemes, computer hacks and buying and selling scams. Dr Michael Schaper, ACCC deputy chair, urged Aussie businesses to examine offers carefully as tactics on such type of scam are advancing.

"Attacks on businesses where scammers try to trick, deceive or manipulate businesses into sending money or divulging confidential information continue to increase in both frequency and sophistication," Business News Australia quotes Schaper. He revealed 80 percent of scammers try to reach businesses through emails or phone so it is really essential for businesses to be aware that these scams are out there in the community.

Several approaches on how businesses can be protected were outlined by Scamwatch. The approaches involved scrutinising offers and requests for payment and backing up computer data to an external drive. The watchdog also recommended ensuring the installation of firewalls and anti-virus software.

WannaCry ransomware scam

The news comes as victims continue to reel from the recent WannaCry ransomware scam, which attacked hundreds of thousands of organisations. Over 200,000 systems, which include British hospitals and Germany's national railway, have reportedly been hit by the attack in 150 countries.

Aussie Prime Minister Malcolm Turnbull told reporters in Sydney earlier this week that the country has not yet seen the same level of impact felt in the United Kingdom. Cyber security advisor, Alastair MacGibbon, said it was not a game for Australia.

He told ABC radio there are apparently some small businesses that will be hit. He echoed Turnbull’s statement, saying as a nation, Australia missed the worst.

"As recent events with the WannaCry ransomware scam demonstrates, businesses can be just as vulnerable to scams as anyone else in the community," Schaper said. ACCC said small businesses have to be most vigilant in protecting themselves against cyber attacks. Businesses are advised to visit the Scamwatch website and sign up to Scamwatch radar alerts to learn more about scams and how to avoid them.

WannaCry hackers to sell tech secrets, compromised network data from banks, nukes and missile programs