How to Spot and Avoid Bank Transfer Scams in Australia

Bank Transfer Scams Are on the Rise

Australians lost over $2.7 billion to scams in 2023 according to the ACCC's Scamwatch report, with bank transfer fraud accounting for a significant portion. Unlike credit card fraud, where charges can be reversed through chargeback processes, bank transfers sent to a scammer's account are extremely difficult to recover. Once the money leaves your account via BSB and account number, it is treated as an authorised payment — even if you were deceived into making it.

Understanding common scam tactics and knowing how to verify BSB details before you transfer can protect you from becoming a victim.

Common Bank Transfer Scams

Invoice or payment redirect scams

This is the most financially damaging scam type in Australia. A scammer intercepts a legitimate invoice — from a tradesperson, solicitor, real estate agent, or supplier — and replaces the BSB and account number with their own. The invoice looks genuine in every other respect: correct logo, correct amounts, correct reference numbers.

How it works:

1. A scammer gains access to a business's email account through phishing or credential theft.
2. They monitor email conversations, waiting for an invoice to be sent.
3. They intercept the invoice and change the BSB and account number to an account they control.
4. You receive what appears to be a legitimate invoice and pay it.
5. The money goes to the scammer's account and is quickly withdrawn or transferred overseas.

This scam is particularly dangerous during property settlements, where the amounts involved are large and the transaction is time-sensitive. Multiple Australians have lost their entire home deposit to this type of fraud.

Impersonation scams

A scammer contacts you pretending to be from your bank, a government agency (ATO, Centrelink, Medicare), a utility company, or a well-known business. They create a sense of urgency — your account has been compromised, you owe a tax debt, your electricity is about to be cut off — and pressure you into transferring money to a "safe" account or paying an overdue bill.

Warning signs:

• Unsolicited phone calls, texts, or emails claiming to be from your bank or a government agency.
• Pressure to act immediately, with threats of account closure, legal action, or service disconnection.
• Requests to transfer money to a BSB and account number they provide.
• Instructions not to tell anyone about the transaction.

Buying and selling scams

These occur on online marketplaces (Facebook Marketplace, Gumtree, eBay). A scammer lists an item at an attractive price, requests payment via bank transfer (BSB and account number), and then never delivers the item. Alternatively, a scammer posing as a buyer may send a fake payment confirmation and ask you to ship the item before the "payment" clears.

Romance scams

A scammer builds an online relationship over weeks or months, then requests money via bank transfer for an emergency, travel costs, or a business opportunity. These scams are emotionally manipulative and victims often make multiple transfers before realising the deception.

How to Verify BSB Details Before Transferring

Verifying the BSB before you send money is one of the simplest ways to catch a scam. If someone provides you with banking details, take these steps:

1. Look up the BSB

Enter the BSB at BSBFinder to confirm it belongs to the bank the person or business claims to use. If someone says they bank with Commonwealth Bank but the BSB belongs to a different institution, that is an immediate red flag.

2. Check the branch location

BSBFinder shows the branch location associated with each BSB. If you are paying a local tradesperson in Sydney but the BSB is linked to a branch in a different state, ask questions before proceeding.

3. Verify the BSB is active

A BSB that shows as "Discontinued" or "Merged" on BSBFinder should not be used for new payments. If someone provides a discontinued BSB, it may indicate the details are outdated or fabricated.

4. Call the payee directly

For large payments, phone the person or business on a number you independently verify — not a number from the invoice or email. Confirm the BSB and account number verbally. This single step defeats invoice redirect scams, which rely on you trusting the details in a compromised email.

5. Send a small test payment

For first-time payments to a new recipient, send a small amount (for example, one dollar) and ask the recipient to confirm they received it before sending the full amount. This adds a delay but can save you from a devastating loss.

Red Flags That Indicate a Scam

Be cautious if you encounter any of the following:

• Changed banking details. A supplier or payee suddenly provides new BSB and account number details, especially via email. Always verify by phone.
• Urgency. Pressure to pay immediately, with consequences for delay. Legitimate businesses and government agencies allow reasonable time for payment.
• Unusual payment method. A request to pay by bank transfer when the business normally accepts other methods (credit card, BPAY, PayID).
• BSB doesn't match the claimed bank. Use BSBFinder to verify. Each BSB prefix corresponds to a specific institution — for example, BSBs starting with 06 belong to Commonwealth Bank, and BSBs starting with 03 belong to Westpac. If the prefix doesn't match, investigate further. You can use the BSB Decoder tool to check which bank a BSB belongs to.
• Overseas account. If you are paying an Australian business but they provide international banking details (SWIFT code, IBAN), verify independently.
• Unusual account name. If the account name on the transfer confirmation does not match the person or business you are paying, stop and verify. Note that not all banks display the account name before you confirm — this is a known gap in the Australian system.

What To Do If You've Been Scammed

If you believe you have transferred money to a scammer, act immediately. Speed is critical — the sooner you report it, the more likely the bank can freeze the funds before the scammer withdraws them.

Step 1: Contact your bank immediately

Call your bank's fraud or emergency line. Most banks have 24/7 fraud reporting:

• Commonwealth Bank: 13 2221
• Westpac: 1800 230 144
• ANZ: 13 33 50
• NAB: 13 22 65

Tell them you have made a payment to a suspected scammer. Provide the date, amount, and the BSB and account number you sent the money to. Request that they contact the receiving bank to attempt to freeze the funds.

Step 2: Report to Scamwatch

Lodge a report with the ACCC's Scamwatch. Your report helps authorities track scam trends, identify scammer networks, and warn others. Provide as much detail as possible, including the scammer's contact details, the BSB and account number used, and any communications you have.

Step 3: Report to ReportCyber

If the scam involved online fraud, identity theft, or cybercrime, lodge a report with the Australian Cyber Security Centre via ReportCyber. This is particularly important for invoice redirect scams involving compromised email accounts.

Step 4: Contact IDCARE

If you have shared personal information (identity documents, tax file number, passwords) with the scammer, contact IDCARE on 1800 595 160. They provide free support for identity theft and can help you secure your accounts and documents.

Step 5: Keep records

Save all evidence: emails, text messages, screenshots of conversations, bank statements, and any reference numbers from your reports. You will need these if the matter is investigated or if you pursue recovery through the Australian Financial Complaints Authority (AFCA).

The Confirmation of Payee Initiative

One of the biggest weaknesses in the Australian payment system is that banks do not consistently verify that the account name matches the BSB and account number before processing a transfer. This means you can enter the wrong name and the payment will still go through — to whoever owns that BSB and account number combination.

The Confirmation of Payee (CoP) initiative, being developed by the Australian Payments Network, aims to close this gap. When fully implemented, your bank will check the name you enter against the name registered on the receiving account and warn you if they don't match — before you confirm the transfer.

This system is already in use in the United Kingdom and has been effective at reducing misdirected payments and certain types of fraud. Australian banks are working toward implementation, but as of early 2026, it is not yet universally available. Until it is, manual verification of BSB details remains your best defence.

Protecting Your Business

Businesses are particularly vulnerable to invoice redirect scams and should implement additional safeguards:

• Verify all payment detail changes by calling the supplier on a known number before updating banking details in your accounts payable system.
• Use dual authorisation for large payments — require two people to approve any transfer above a threshold.
• Secure your email. Enable multi-factor authentication on all business email accounts. Invoice redirect scams begin with email compromise.
• Educate your staff. Ensure anyone involved in making payments knows the signs of a scam and the verification procedures.
• Include a verification notice on your own invoices. State your BSB and bank name, and include a note such as: "Our banking details will not change without prior written and verbal confirmation. If you receive updated banking details by email, please call us to verify."

Key Takeaways

1. Always verify BSB details before making a transfer, especially for new payees or when banking details change. Use BSBFinder to confirm the BSB matches the expected bank and location.
2. Phone to confirm payment details for large or important transfers — use a number you find independently, not one from the invoice or email.
3. Be sceptical of urgency. Legitimate organisations do not pressure you to transfer money immediately.
4. Act fast if scammed. Contact your bank's fraud line immediately — every minute matters.
5. Report it. Even if you cannot recover your money, reporting to Scamwatch and ReportCyber helps protect others.

For more on what happens when money goes to the wrong account, see our guide on what happens when you enter the wrong BSB number. To understand how BSB prefixes identify banks (useful for spotting mismatched details), see the BSB Decoder and BSB prefix lookup.