The Australian Small Business and Family Enterprise Ombudsman, (ASBFEO) Bruce Billson is urging business owners to strengthen their security as scammers ramp up their activity over the holiday period.

The ombudsman is suggesting business owners need to be particularly vigilant as an increasing number of bad operators attempt to scam them by impersonating government agencies such as the Australian Tax Office (ATO).

The ombudsman made the warnings amidst startling figures released during Scam Awareness Week which showed Aussies had lost over $429 million to scammers in the year to date.

Billson emphasised the severity of the issue, with small businesses facing tax debts after unwittingly sharing their myGov details with scammers disguised as trustworthy individuals.

Scammers are everywhere

In an effort to combat scammers, the ASBFEO urges business owners not to disclose sensitive information such as myGov passwords and logins and emphasised the importance of scrutinising agreements before signing.

“Scams come in all shapes and sizes,” warns Billson, cautioning against both sophisticated cyber attacks and more traditional fraud methods. Scamwatch data, reveals that 75 per cent of reported scams involve criminals impersonating trusted individuals. Billson advises business owners to trust their instincts and be cautious of offers that seem too good to be true.

The financial cost of scams

The Ombudsman underscores the potential consequences of falling victim to scams, stating that criminal impersonation not only results in financial losses for businesses and customers but can also harm a brand’s reputation, erode consumer trust, and jeopardise a business’s ability to operate.

In a recent case, a sole trader faced a $400,000 tax debt after entrusting a friend with their myGov details to complete their Business Activity Statement. Another small business incurred a $45,000 tax debt when a scammer falsely claimed to be assisting them with funding through myGov.

To protect against scammers, Billson encourages businesses to use registered tax agents and accountants, thoroughly check the legitimacy of service providers, and scrutinise details such as ABNs and business names.

Have you been a victim of a scam? Make sure to report it at the ‘Report a Scam’ page on www.scamwatch.gov.au or contact www.asbfeo.gov.au if concerned about falling victim to a scam.