Is personal accountability the new frontline in scam prevention?

In a recent case, the District Court of Western Australia ruled that a customer was liable for payments they had made to a scammer. The fraudster had infiltrated a legitimate service provider's email account and presented the customer with new false account details for their payment, yet it was the customer who bore the loss under the circumstances. This shift towards consumer liability emphasises personal responsibility in the fight against financial fraud. Today, transactions are fast, frequent, and often faceless, so it’s critical for individuals and businesses to take an active role in protecting their finances.

The trade-off between convenience and risk

Digital platforms and online banking have dramatically changed how we manage money, but with this convenience comes risk. Cybercriminals adapt quickly and are increasingly sophisticated, leveraging social engineering, phishing, artificial intelligence (AI) and impersonation tactics to deceive even the most cautious users.

We are also seeing a hardening stance from financial institutions, meaning authorised payments, even to a scammer, may lead to personal liability. The reality is that once a payment is willingly authorised, even under false pretences, the chances of recovery are slim. That’s why prevention is essential.

Security is a shared responsibility

Financial institutions are investing heavily in advanced fraud detection systems, AI-driven monitoring, and customer education. But these tools are only effective when customers also play their part by:

1. Verifying the identity of payment recipients independently
2. Avoiding transactions over unsecured networks
3. Using biometric or multi-factor authentication wherever possible
4. Being sceptical of unsolicited messages, even if they appear legitimate.

The assumption that banks will automatically reimburse fraud losses is outdated. The onus is increasingly on the customer to exercise due diligence and act with extreme caution.

The cost of complacency

In this environment, complacency is costly. Scammers are relentless, and their tactics evolve constantly. A moment of inattention, one click on a malicious link, or a rushed payment to a compromised account, can result in substantial financial loss with little recourse to undo the mistake. Staying informed, alert, and in control is no longer optional. It’s your first and best line of defence.

What businesses and individuals can do

At BDO, we work with clients across sectors to investigate fraud, assess vulnerabilities, and build resilience. Here are a few practical steps to stay safe against cybercriminals:

• Conduct regular fraud awareness training for staff and family members
• Implement strong internal controls for payment approvals
• Review and update cybersecurity protocols regularly
• Engage in scenario planning to understand how your organisation would respond to a scam.

As scams evolve, so too must our defences. By embracing a mindset of shared responsibility and proactive vigilance, individuals and businesses can play a role in reducing the impact of financial crime.

Our forensic services professionals provided input into Australia’s Scam Prevention Framework and publish quarterly Scam Culture reports on the evolving landscape.

BDO can assist you in mitigating and resolving high-risk matters, helping your organisation create and embed governance frameworks to retain value. Contact our forensic services team to discover how we can help you prevent, detect and address the risks your organisation faces.