Real estate often means dealing with large sums of money which is extremely attractive to scammers. So, if you’re gearing up to make a spring move or want a new home to settle before Christmas, it’s important you read this article and avoid real estate deception scams.
The Australian Competition & Consumer Commission (ACCC) revealed that Australians lost a record $3.1 billion to scams in 2022, an 80 per cent increase on total losses recorded in 2021.1
“The true cost of scams is much more than a dollar figure as they also cause emotional distress to victims, their families and businesses,” ACCC Deputy Chair Catriona Lowe said.
Real estate scams such as payment redirection and social medial rental schemes are alarmingly on the rise. We explain what they are and how you can keep yourself safe.
Business email compromises or payment redirection scams.
Payment redirection scams were one of the highest loss categories for scams in 2022, with Australians being duped out of $244 million.
They can be widespread in the real estate industry and target victims by pretending to be a trusted business. This fake business could be posing as a conveyancer or mortgage broker, and they may send you an email asking for payment such as a deposit.
These emails often look quite convincing, with professional standard invoices and email signatures.
So how can you keep yourself safe from payment redirection scams? If you’ve already used the business, double check that the BSB and account details match those you’ve previously used.
Also review the email address and ensure it matches up with any previous legitimate emails you’ve received from the business.
When making payments, especially large sums, take the time to call the sender whether it’s your mortgage broker or conveyancer directly using the phone number specified on their official website (not the one mentioned in the potentially fraudulent email) – and verify the payment details directly with them to confirm the legitimacy of the email.
This one call could save you from being scammed out of thousands of your hard-earned dollars.
Rental scams on social media.
Social media marketplaces are commonly used to sell everyday household items. However, recent trends point to these marketplace sites being used to host fake rental listings.
Information about properties is often copied from legitimate sources2 and the scammer will pose as the property manager to obtain payment of items such as bond or advance rent.
Red flags to look out for include differences in the address and location of the property in question, as well as asking for the bond to be paid to the property manager instead of the relevant bond authority.
“Other warning signs include rental listings that have extremely low prices or the ‘landlord’ saying they can’t show you the property because they are away or sick and suggesting you do a drive-by of the property instead,” Real Estate Institute of WA CEO Cath Hart said.
Protect yourself by only using trusted real estate sites, and if in doubt about the property manager’s credentials, check to see if they have other listings online, or check their registration certificate where relevant.
To learn more, we suggest you also read our article - Scams on the rise in real estate, legal, and construction industries.
Stay informed. And protect your money from scammers.
Educate yourself on how to keep your money safe from scammers.
Read our series of blog articles about scams, fraud and security.
Alternatively, talk to our team by calling our Contact Centre on 1800 033 139 or visit your local branch.
1. https://www.scamwatch.gov.au/news-alerts/accc-calls-for-united-front-as-scammers-steal-over-3bn-from-australians
2. https://reiwa.com.au/news/tenants-are-easy-targets-for-scammers/
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.
