How Can I Reduce the Risk of Fraud, Errors and Unauthorised Payments in My Business?

Reducing fraud and error risk comes down to three things working together: removing the opportunity for a single person to move money unchecked, building in regular, genuine review of what's actually happening in the accounts, and treating unusual requests — particularly changed payment details — with healthy scepticism as standard practice, not paranoia.

• One person controlling the entire payment process. Covered in detail in the companion guide on financial controls — if the same person raises, approves and pays invoices, there's no natural check on any of those steps.

• Supplier detail changes taken at face value. Payment-redirection scams — a fraudster posing as a real supplier requesting updated bank details — remain one of the most financially damaging scam types reported by Australian businesses.

• Compromised email accounts. A hacked supplier or internal email account is how many payment-redirection scams actually begin — the fraudulent request often comes from a genuine-looking email thread, sometimes even a hijacked real one, not an obviously fake address.

• Infrequent bank reconciliation. The longer the gap between transactions occurring and someone actually checking them, the longer an error or irregularity can run undetected.

• No one reviewing the bigger picture. Individual transactions might look fine in isolation, but a pattern — recurring round-dollar payments, a new payee appearing repeatedly — is only visible when someone looks at the whole picture regularly.

• Verify any changed supplier bank details by phone. Using a number you already have on file — never one supplied in the request itself — before paying to a new account.

• Treat email as an unverified channel for anything involving payment details. An email thread looking legitimate, even one that continues a genuine prior conversation, is not itself proof of authenticity — payment-detail changes need independent verification regardless of how convincing the email looks.

• Reconcile the bank account regularly, and review it personally. A monthly scan, at minimum, of payments over a set threshold, all payments to new payees, and any round-dollar or duplicate amounts.

• Restrict access to sensitive functions. Not everyone who processes an invoice needs the ability to edit a supplier's bank account details — in most accounting software, these permissions can be separated.

• Do basic checks before extending credit or a new supplier relationship. A quick background or reference check costs little and can prevent a much larger loss.

• Take leave seriously, and encourage staff to do the same. Concealed fraud is frequently uncovered when the person hiding it finally takes time off and someone else touches their work.

• Reward reporting, don't punish it. Staff who flag something that looks off — even if it turns out to be nothing — should feel safe doing so, not discouraged from speaking up.

• Don't make further payments to the account in question until it's verified through an independent channel.

• Contact your bank immediately if a payment has already been sent to a suspected fraudulent account — a fast report sometimes allows funds to be recalled before they're withdrawn.

• Preserve the relevant emails, invoices and records rather than deleting them — they may be needed for a bank investigation, a police report, or an insurance claim.

• Report the incident to ReportCyber (cyber.gov.au) and, if it involves a scam, to Scamwatch — this also helps other businesses avoid the same scam.

• Review how the request came in and update your process to close that specific gap, rather than treating it as a one-off.

No set of controls prevents everything — which is why regular review matters as much as the upfront safeguards. An exception report that flags payments over a certain amount, a monthly personal review of new payees, and a habit of actually looking at reconciliations rather than just filing them, are what catch the things prevention alone misses.

• Could any one person in my business both create and approve a payment, unchecked?

• Do I have a genuine process — not just a habit — for verifying changed supplier bank details?

• Am I personally reviewing new payees and unusual transactions on a regular schedule?

• Would my team feel comfortable flagging something that looked off, even if they weren't certain?

• you want a proper fraud-risk review of your specific business processes;

• you suspect an irregularity and want it investigated discreetly and properly;

• you're setting up approval workflows or access controls in your accounting software for the first time; or

• you want an outsourced or structured finance function that separates money-movement from record-keeping properly.

→ What Financial Controls Does a Small Business Actually Need?

→ How Often Should I Reconcile My Business Bank Account?

→ Should I Open a Separate Business Bank Account?

SKC Accounting | Knowledge Centre | Knowledge Guide 043

Last reviewed: August 2026

General information only. This guide does not take into account your individual circumstances and is not a substitute for professional accounting, taxation, legal or financial advice.