Australians are losing millions of dollars to real estate scams last year and the numbers continue to climb. According to the ACCC’s Scamwatch, there are now around two reports every week of payment redirection scams in property transactions.
So how do you protect your hard-earned money while working toward the dream of owning a home?
In this blog, we break down why scammers are targeting the real estate industry, the most common scams to watch for and how you can stay one step ahead to stay protected.
What does a Real Estate scam look like?
One of the most common tactics is known as payment redirection.
This type of scam falls under “business email compromise,” where criminals either hack into an email account or impersonate a trusted professional using a fake email address. They may pose as your conveyancer, real estate agent, solicitor, broker, or even a bank representative.
These scams often happen during the settlement stage where large sums of money are being transferred to settle a property transaction. Scammers send an urgent email requesting you update payment details, redirecting funds into their own account. Unfortunately, once the money is sent, it can be extremely difficult to recover.
To avoid this, it is important you get into the habit of verbally confirming bank account details before transferring any funds. Verbally confirming is done via either over the phone (calling the trusted business line NOT on an anonymous number) or going into the office space. As well as providing confidential bank information in the office space or over the phone (again, NOT on an anonymous number).
Why Is the Real Estate industry being targeted?
Property transactions involve multiple parties, tight timelines, and significant financial transfers, making them an attractive target for scammers.
With much of the communication now happening via email, cybercriminals are exploiting gaps in security and taking advantage of the fast-paced nature of the process. Combined with Australia’s booming property market, this creates the perfect environment for fraud.
To add further protection with this issue (other than cyber-security software on your trusted devices) you should not open any links that you are not expecting. Always verbally confirm with whomever has sent the link that it Is a legit and safe link to open and action.
How to further protect yourself
With scams on the rise, staying vigilant is key. Here are some further practical steps you can take:
- Check email addresses carefully for subtle errors or inconsistencies.
- Don’t rush.. Urgent requests are often a red flag. Take the time to confirm.
- Double-check any changes to payment details through a verified contact.
- Act quickly if something goes wrong. Contact your bank immediately (ideally within three days).
- Enable two-factor authentication on your email accounts for added security.
Stay safe and Informed
Buying property should be an exciting milestone, not a stressful one. By staying informed and taking a few extra precautions such as the above, can significantly reduce your risk.
If you’re currently navigating the property market and want peace of mind, working with a trusted, experienced conveyancing team can make all the difference.