Australian small businesses are being warned that while scam activity appears to be declining, the financial damage caused by successful attacks is increasing.
New analysis by BizCover, drawing on data from Scamwatch, reveals that scam reports fell by more than 20 per cent over the past year, but total losses climbed to approximately $295 million.
The findings highlight a concerning shift in scam tactics, with criminals moving away from high-volume, low-value fraud towards more targeted, higher-value attacks.
According to BizCover, the average loss per scam rose by more than 30 per cent, underlining the increasing sophistication and effectiveness of modern scams. While fewer incidents are being recorded overall, those that succeed are having a far greater financial impact on businesses.
Phishing scams remain the most commonly reported type, with attackers continuing to exploit emails, fake invoices and impersonation techniques to infiltrate businesses. Despite a drop in overall reports, losses linked to phishing have surged significantly, reflecting the growing precision of these attacks.
Investment scams accounted for the largest total financial losses, with criminals luring victims through seemingly legitimate opportunities that result in substantial financial exposure. Meanwhile, jobs and employment scams are emerging as one of the fastest-growing categories, with sharp increases in both reports and losses.
Online channels continue to dominate as the primary avenue for scams, reinforcing the need for businesses to strengthen their digital security and verification processes.
BizCover said the evolving nature of scams is being driven in part by new technologies, including artificial intelligence, which is enabling more convincing and personalised fraud attempts. These scams are often designed to exploit trust, urgency and routine business processes, making them harder to detect.
The company warned that even a single successful scam can have serious consequences for small businesses, from cashflow disruption to reputational damage and operational setbacks.
BizCover urged business owners to remain vigilant and invest in preventative measures, including staff training, verification protocols and cybersecurity tools.
The analysis, based on Scamwatch research and data, serves as a reminder that declining scam volumes do not equate to reduced risk, particularly as financial losses continue to climb.