Sydney, 12 April, 2007: The Australian Bankers’ Association (ABA) is warning Australian businesses of money transfer email scams which target export businesses.

The fraudulent emails often look as though they are sent from Ghana or Nigeria, in Africa, and are aimed at businesses which could send goods overseas such as electrical appliances, office equipment, building supplies or computers.

Example of the money transfer email scam

1. An Australian building supplies company is contacted by email by a Reverend (fraudster) working for a Ghanaian company to supply a quote for a large order of building materials for the construction of an orphanage in Ghana. 
2. The fraudster accepts the quote from the Australian company, without any negotiation, and notes that freight costs need to be paid to transport the goods to Ghana. He suggests they contact a Ghanaian freight company to seek a quote.
3. The alleged Ghanaian freight company sends back an email which notes the freight costs will be $5000.
4. The fraudster supplies his credit card details to the Australian building supplies company which charges his card for $5000 for the freight cost.
5. The fraudster then asks the Australian building supplies company to send $5000 via Western Union to the alleged Ghanaian freight company as he claims he cannot complete this transaction himself.
6. The Australian company transfers the $5000 via Western Union which is received by the alleged freight company.
7. At the same time, the fraudster arranged for the credit card transaction to be reversed.
8. The outcome is that the Australian building supplies company is defrauded of $5000, the fraudster does not have to pay the $5000 credit card bill, the alleged freight company has received the funds and no order for building supplies is ever placed. 

David Bell, Chief Executive of the ABA, said: “It is very important for businesses and individuals to know with whom they are dealing before transferring or sending any money. Once money is sent, it can be very difficult to get back, especially if it is sent overseas.”

“If you have been targeted by this scam, contact your bank immediately. Banks can complete a fraud investigation, but it is usually not possible to retrieve any money from these criminals based overseas which means that businesses may lose money as a result of this type of fraud.”

Advice to businesses

• Be cautious when responding to any instructions via email, especially from overseas.
• Fraudulent emails often promise rewards beyond expectations – if it’s too good to be true, it probably is.
• Before conducting business with a new customer, know your customer.
• Never give your business bank account number or information about your business to unauthorised people.
• If you are unsure about a business offer, ask for more information or seek independent advice.
• Always check that goods and services were both ordered and delivered before paying an invoice.

For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS