Many Australians Overlook Warning Signs of Scams in Property Settlement Emails

A recent survey conducted by PEXA revealed that nearly all Australians involved in property transactions over the past year, or those planning to buy in the next year, failed to recognise signs of email scams during the settlement process. The survey, which included 1,030 participants, found that 97% of respondents overlooked obvious indicators of fraudulent activity in property transaction emails, despite many expressing high confidence in their ability to detect scams. This alarming finding was published alongside PEXA’s latest White Paper, “Safeguarding Your Property Settlement: Awareness and Prevention of Scams,” authored by Graham Fairley, Chief Information Security Officer at PEXA. The paper underscores the growing threat of property settlement scams in Australia, categorising them as some of the most financially damaging forms of cyber-crime affecting home buyers and sellers.

Graham Fairley explained that property settlements are particularly vulnerable to scams due to the large sums involved, tight timeframes, and the routine reliance on email communication. He noted that cybercriminals exploit these conditions, understanding that they do not need to compromise systems but rather trust. Scams often involve business email compromise tactics, where scammers impersonate trusted parties such as real estate agents, lawyers, or conveyancers. Fairley highlighted that these scams can include subtle alterations in email addresses, urgent payment requests, and threats of forfeiting the purchase if deadlines are not met. Victims, often under significant stress to complete transactions, may fail to notice these red flags. He also pointed out the challenges in recovering funds lost to such scams, which are much more complex than typical credit card fraud. To mitigate these risks, the White Paper advocates for increased vigilance and the use of secure digital tools, urging buyers and sellers to verify any correspondence related to settlements, especially those involving financial transfers. 

Categories: Email Scams, Property Transactions, Cybersecurity Awareness 

Tags: Australians, Property Transactions, Email Scams, Settlement Process, Fraudulent Activity, Cyber-Crime, Business Email Compromise, Financial Transfers, Scam Awareness, Secure Digital Tools