Australian small businesses lose $7.9 Million to scams in 2024

Scams targeting small businesses continue to be a serious concern, with Australian small businesses losing a whopping $7.9 million to fraud in 2024.

While this figure marks an improvement from last year’s $17.3 million, thanks to efforts like the establishment of the National Anti-Scam Centre, the numbers still suggest maintaining good cyber security hygiene is a problem for small enterprises.

Small businesses a target for scammers

Recent data from Reckon, an Australian accounting software company, reveals that non-employing, micro, and small businesses make up nearly half of all reported scams. In fact, these businesses accounted for nearly 60 per cent of the total losses reported in 2022 and 2023. With scammers continually evolving their tactics, it’s clear that these businesses are especially vulnerable.

The most common scams reported in 2024 were false billing, investment scams, and phishing, with losses amounting to millions. False billing scams alone caused a total loss of $3.6 million, with 422 reports made. These scams typically involve businesses being tricked into paying for goods or services they never ordered.

Investment scams costing businesses big bucks

Investment scams, which caused the greatest financial damage, saw businesses lose $3.7 million across just 50 reports. On average, each of these scams cost small businesses around $74,000. While these scams may seem sophisticated, they’re designed to take advantage of businesses looking to invest or grow their operations.

Phishing scams were the second most commonly reported, with 336 businesses losing a total of $104,600. These scams often involve scammers posing as legitimate organisations, tricking businesses into handing over sensitive information like passwords or bank details.

Other scam categories also took a toll on small businesses. For example, classified scams and online shopping scams led to a combined loss of more than $4 million. Phishing, remote access scams, identity theft, and fake charity scams also contributed to the overall losses.

QLD: the gullible state

Reckon’s research also provides state-by-state insights into the scams affecting small businesses across Australia. Queensland reported the highest total losses, with $2.5 million lost across 411 reports. Victoria followed closely behind with $2.3 million lost, though the average loss per report was slightly higher at $6,222.

Interestingly, Tasmania reported the fewest losses overall, but the highest rate of scams relative to the number of businesses in the state. The Northern Territory, though recording the fewest reports, had a high rate of scams per 10,000 businesses.

While this data paints a worrying picture, the overall decrease in losses compared to 2023 shows that efforts to combat scams are making a difference. However, the threat remains, and small businesses must continue to be vigilant.

Small businesses can protect themselves by staying informed about the latest scams, educating their teams, and ensuring they have the right security measures in place.

For more information, including in-depth scam statistics, visit Reckon’s Business Scam Stats page.

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