Police Recover $118,000 for Melbourne Business Targeted in Email Compromise Scam

Victoria Police, working alongside the Australian Federal Police's Joint Policing Cybercrime Co-ordination Centre (JPC3), have recovered $118,000 transferred by a Melbourne family business employee who was targeted in a nationwide Business Email Compromise scam, authorities announced on Friday.

The incident involved an employee named Kate, who works for a furniture retailer in Melbourne's Bayside area. Between 25 August and 5 September, Kate exchanged legitimate emails with a supplier regarding the shipping of outdoor furniture worth $118,000. Between 7 September and 25 September, unauthorized actors intercepted the email thread, impersonated the supplier, and claimed that the bank account details had changed. Under pressure from urgent payment requests, Kate complied and transferred the funds.

After her bank flagged the transaction as potential fraud, Kate phoned the supplier directly, confirming that the payment request was fraudulent. While the bank was unable to recall the funds, the Cybercrime Squad and the JPC3 intervened following an immediate report via ReportCyber, successfully blocking the funds and returning the money to the business.

According to Victoria Police, the Cybercrime Squad has received 107 reports of Business Email Compromise scams since July of this year. Detective Sergeant Dean Waters of the Cybercrime Squad stated that scammers are targeting businesses and suppliers across the state by manipulating email threads to redirect payments into fraudulent accounts using false urgency.

Authorities advised businesses and individuals to independently verify any requests to alter bank details by contacting suppliers directly using confirmed phone numbers, to cease communications if fraud is suspected, and to immediately report incidents to their financial institutions, Victoria Police, and ReportCyber.

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