Scams have come a long way since the days of the infamous “Nigerian Prince” emails. Those early attempts were easy to spot, but modern scams are highly sophisticated and specifically designed to build trust. No industry is immune, and property settlements have become a prime target.
Scamwatch is reminding Australians to follow three simple steps: Stop. Check. Protect.
Why property settlements are at risk
Buying or selling a home is often the biggest financial transaction of your life, which makes it a tempting target for criminals. Scammers use Business Email Compromise (BEC) to impersonate trusted professionals such as real estate agents, solicitors or conveyancers. By doing so, they trick buyers and sellers into transferring large sums into fraudulent accounts.
The growing scale of losses:
- A WA homebuyer lost $732,000
- A Sydney couple lost $970,000
- National losses jumped from $16.2 million in 2023 to $43.2 million in 2024
- In WA, more than $500,000 was lost in the first half of 2024, already exceeding the total for all of 2023
Awareness gaps and risks
Research shows that even confident buyers are vulnerable:
- 97% of buyers could not identify scam markers in transaction emails
- 40% admitted they would still transfer funds in a scam scenario
- Victims are more likely to be targeted again (70% vs 30%)
The takeaway is clear. Nobody is immune, and thinking “it won’t happen to me” can create dangerous blind spots.
How settlement scams work
Criminals study the settlement process closely and strike at the right moment. Typical tactics include:
- Spoofing legitimate email addresses
- Monitoring transactions to time their attack
- Sending urgent requests to “update” bank details
- Using fake letterheads and logos to look official
Red flags to watch for:
- A sudden change in bank account details
- Pressure to act quickly
- Subtle spelling errors in email addresses
- Instructions that are not confirmed by phone
- Warnings from Confirmation of Payee systems
Practical ways to stay safe
The good news is that with the right processes, you can reduce your risk significantly:
- Use secure platforms: Exchange bank details through encrypted apps such as PEXA Key, which includes a Secure Communication Guarantee of up to $2 million
- Verify independently: Always call your conveyancer or bank using a trusted phone number, never the one provided in a suspicious email
- Pay attention to warnings: If your bank’s Confirmation of Payee system says the details do not match, stop and check before transferring funds
- Be vigilant: Double-check sender details, avoid urgency traps, and never click unknown links
- Act quickly if concerned: Contact your bank immediately, then notify your conveyancer and report the scam to Scamwatch at scamwatch.gov.au/report-a-scam
Prevention is better than cure
Once money is lost to a scam, it is often unrecoverable. That is why prevention is the best defence. At Mosaic Settlement we take scam awareness seriously, with secure systems and clear communication designed to protect you at every step.
Remember the golden rule:
Stop. Check. Protect.
