Homebuyers warned as property scams surge in spring season

This Cyber Security Awareness Month, potential homebuyers are being advised to exercise caution during the spring selling season, amidst a recent surge in property-related scams.

InfoTrack, a property technology firm, has reported a 20 per cent increase in the number of property contracts being prepared for new sales between July and September, marking spring as the traditionally busy period for real estate transactions. InfoTrack's Head of Securexchange, Alexander Antal, highlighted the importance of vigilance, particularly as market conditions can pressure buyers into making quick decisions.

Recent scams highlight the severity of the situation. Last month, a Victorian man lost AUD $200,000 to fraud. In a separate incident in August, a Victorian couple was defrauded of AUD $500,000 after their conveyancer's email was compromised. Additionally, a New South Wales couple had AUD $49,000 in settlement funds stolen.

"Cybercriminals have their sights set on property transactions because not only are deposits in the tens of thousands and upwards, copies of passports and driver licences are exchanged to verify ID, potentially exposing buyers to identity theft and fraud," Mr Antal stated. He also observed that the unfamiliarity of the transaction process, coupled with the need for swift decisions and the inherent stress, may reduce buyers' alertness to scams.

To mitigate risks, Mr Antal recommends ensuring the security of all communication channels and using trusted platforms for transactions. "Our advice is to ask your lawyer, conveyancer, and real estate agent how they plan on sharing sensitive and confidential information and insist they use a secure platform to protect your money," he noted. Additionally, Mr Antal advised against sending account details via email. "All communication related to the transaction should be secure, taking away the opportunity for scammers to hack into emails and contact buyers," he said.

Several precautionary measures were suggested to further protect buyers from falling prey to scams. If homebuyers receive an email from their lawyer, conveyancer, or real estate agent requesting fund transfers, it is prudent to call and verify the legitimacy of the request. In the event of falling victim to a scam, it is crucial to promptly report the incident and update banking details and passwords to forestall additional fraudulent activities.

Securexchange, a platform launched in 2019, has played a significant role in safeguarding property transactions. In the last financial year, Securexchange protected more than 38,831 property fund requests, securing over AUD $6.2 billion in real estate assets from cyber threats.