Master Builders warns members of email scam, after one company gets robbed of almost $100k

The state’s builders have been warned to be on high alert after scammers swindled thousands of dollars from local companies, including nearly $100,000 in one case.

Builders are being warned to be on high alert as a email scam makes its way around the industry.

The state’s builders have been warned to be on high alert after scammers swindled thousands of dollars from local companies, including nearly $100,000 in one case.

Master Builders of SA has issued a warning to members advising that scam emails purporting to be from a local commercial building company being sent to organisations in the industry.

The body’s membership manager Marissa Hankinson warns that the emails state the company has changed its bank details for the purpose of progress claim payments.

“The emails contain a staff email signature of the company and therefore may give the perception of being genuine,” she says.

“We have also heard of building companies having their email accounts hacked and sending fake invoices by email to other building companies.

“We are aware of one company paying $91,000 after mistakenly believing an invoice was genuine.”

Members were advised to delete any email and not to take any action if they get an email along those lines.

It comes as the state’s builders approach the statewide Christmas and New Year shutdown, meaning they are even busier than usual.

The Advertiser understands the scam works by hacking the email account of a subcontractor and sending the builder a fake invoice email.

The hacker then gets inside the builder’s email and turns on email forwarding to their own address.

They then add blocking filters so the subcontractor cannot find out what they are doing.

In May The Advertiser reported that scammers were targeting building companies in an attempt to steal money from unsuspecting clients for progress payments.

They succeeded in stealing a six-figure sum from an ACT-based firm which sent the funds to a bogus account of Hindmarsh Builders in NSW.

The ACC said scammers swindled nearly $4.7 million from Australian businesses in 2017 — a 23 per cent increase on 2016.