Understanding the Forwarded Email Scam

Understanding the Forwarded Email Scam: A New Twist on Email Fraud

Email scams have evolved to be more sophisticated and deceptive over time, with one of the latest tactics exploiting the "forwarded email" feature. This approach allows scammers to manipulate the body of an email they claim to be forwarding, making their messages appear more authentic and harder to detect. By mimicking official correspondence from trusted entities such as ATO, Austrac, NSW Trustee & Guardian, or St. George Bank, these scammers trick victims into believing the email's legitimacy and taking harmful actions.

Here’s an in-depth look at how this scam works and how to protect yourself.

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How the Forwarded Email Scam Works

1. Creation of a Fake Original Email:
   The scam begins with the fraudster crafting a convincing "original email." This email typically appears to come from a legitimate organisation, such as a government body or financial institution. For example:

   • An email allegedly from Austrac might reference a suspicious transaction flagged for investigation.
   • A fake St. George Bank email may claim payment processing issues or the need for urgent account verification.
   • A fabricated NSW Trustee & Guardian email might address inheritance payments or legal obligations.

2. Manipulation of the Forwarded Email:
   The scammer then "forwards" this fake email to the victim, taking advantage of the email client's flexibility to:

   • Modify the body of the "forwarded" message.
   • Create a false sense of authenticity by retaining official logos, disclaimers, and formatting from the impersonated entity.

   Because the email appears to be forwarded, recipients often assume the original content has not been tampered with and is genuine.

3. Exploitation of Urgency and Authority:
   The scam relies on psychological manipulation by including:

   • Urgent deadlines (e.g., “Immediate action required to avoid penalties”).
   • Official language or threats of legal action, creating fear and reducing critical scrutiny.
   • Links to phishing websites or instructions to provide sensitive information, such as banking details.

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Why This Scam is Effective

1. False Authenticity:
   Forwarded emails are often perceived as more credible because recipients believe the sender is passing along unaltered, original content.

2. Lack of Awareness:
   Many people are unaware that the body of a forwarded email can be edited, making this an under-the-radar technique.

3. Exploitation of Trusted Entities:
   Scammers impersonate organisations that are widely recognised and respected, leveraging their authority to lower suspicion.

4. Human Psychology:
   Phrases like “Austrac requires your compliance” or “NSW Trustee & Guardian payment processing in progress” create a sense of urgency and fear, causing recipients to act without verifying the legitimacy of the email.

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Protecting Yourself Against Forwarded Email Scams

1. Verify the Sender:
   Check the email address carefully. Scammers often use addresses that look similar to legitimate ones but may contain slight misspellings (e.g., st-george.support@banksecure-mail.com instead of stgeorge.com.au).

2. Look for Inconsistencies:
   Examine the formatting, tone, and language of the email. Errors in grammar, awkward phrasing, or unusual formatting can be red flags.

3. Use Official Channels:
   If an email claims to be from an organisation like Austrac or St. George Bank, contact the organisation directly using the contact information on their official website to verify the message.

4. Avoid Clicking Links:
   Hover over any links in the email to inspect the URL. Do not click on links or download attachments from unknown sources.

5. Inspect Forwarded Content:
   Be aware that the content of a forwarded email can be altered. Look for signs of editing, such as unusual timestamps, mismatched sender details, or abrupt transitions in the email chain.

6. Report Suspicious Emails:
   Forward the suspicious email to the organisation it claims to represent or to authorities like Scamwatch or ACCC to help combat fraud.

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Final Thoughts

The forwarded email scam is a prime example of how fraudsters exploit basic email features to deceive unsuspecting recipients. By understanding how these scams operate and taking proactive measures to scrutinise forwarded emails, individuals and organisations can better protect themselves from falling victim to these manipulative tactics. Always question unusual requests, verify information through official channels, and spread awareness to help others stay safe in the digital age.