Buying a home is a significant financial milestone, and with residential property now valued over $11 trillion in Australia, it’s no surprise that scammers are targeting this sector.
Unfortunately, fraudsters are becoming more sophisticated, particularly when large sums of money and sensitive information are involved.
One of the most common scams currently is “payment redirection,” where scammers impersonate someone involved in the transaction, such as a settlement agent, and trick you into transferring money to a fraudulent bank account.
What Does a Payment Redirection Scam Looks Like?
A couple from the Gold Coast experienced a scam late last year while purchasing their dream home. After years of saving for a home deposit, they made sure to hire a reputable conveyancer and worked with a buyers’ agent. They were confident that everything was in place.
They went into an ANZ branch to make two transfers for their home deposit, totalling more than $300,000. However, the day before settlement, they discovered the money was missing.
It turns out that the scammers had intercepted emails between them and their conveyancer and altered the bank account details. Everything looked authentic, from the fees to the stamp duty, but there was one small detail they missed – the email address was missing “.au” at the end.
How to Protect Yourself
This story serves as a reminder to always be cautious when transferring large sums of money, especially when it comes to sensitive details like bank account information. Here are some simple tips to help protect yourself:
- Verify email addresses: Always check the sender’s email address for any inconsistencies. Scammers can create addresses that look nearly identical to legitimate ones, so be sure to double-check.
- Use secure methods for sensitive information: Avoid sending or receiving important bank details through email. It’s safer to confirm account information over the phone or in person.
- Secure your email: Protect your email account with a strong password and enable multi-factor authentication for added security.
- Double-check before transferring money: If you’re ever in doubt, don’t hesitate to verify the request with your conveyancer, real estate agent, or bank.
While scams are becoming more common, taking a few extra steps to verify details can help protect you from falling victim to fraud. Always trust your instincts and reach out if something doesn’t seem right.
