Real estate transactions are prime targets for scammers, with buyers, sellers, and renters all at risk. Last year alone, Australians lost over $318 million to scams, and with property dealings often involving large sums of money, it’s crucial to stay vigilant. Here are the most common scams and tips to protect yourself.
1. Payment Redirection Scams
Scammers impersonate real estate agents to trick clients into sending money to fraudulent bank accounts. They might alter bank details and send these to clients via email, phone, or even postal mail.
Ray White Group’s head of IT, Jacob Downs, warns that scammers create email addresses nearly identical to those of legitimate agents. “They’ll provide updated banking details and try to redirect payments into their own accounts,” he explains. This scam is also prevalent in the rental market, where fake rental agents attempt to redirect payments to scam accounts.
To protect yourself, always call the agent directly to confirm any changes to payment details before transferring funds.
2. False Listing Scams
Fraudsters use photos and details from legitimate listings to create fake ads for rental properties. Posing as landlords, they promise deals too good to resist. Once a deposit is paid, the victim finds that the property does not exist, or the landlord has disappeared.
Jo Natoli, from The Rental Specialists, explains how these scams are particularly effective during the current rental crisis when people feel desperate. Scammers often promise quick, no-questions-asked rentals, bypassing reference checks.
To avoid falling victim to this scam, never pay a deposit for a property you’ve never seen, and always insist on an inspection before handing over any money.
3. When Your Agent Gets Hacked
Real estate agents themselves can fall prey to hackers, leading to serious financial losses. Leanne Pilkington, REIA President, recounts a situation where an agent’s trust account was accessed and funds were withdrawn without the agent’s knowledge. These scams are difficult to prevent, as the hackers often target agency systems.
If you’re concerned, ensure the agent uses secure transaction methods, and double-check all financial details before sending any payments.
Red Flags to Watch Out For
Rushed Deposits: If you’re pressured to pay a deposit quickly, it’s a major warning sign.
No Inspections: If an agent refuses to allow you to inspect a property, don’t proceed.
Suspicious Email Addresses: Always verify that the email address is legitimate. Be cautious of generic addresses like Gmail or Yahoo.
Changed Payment Details: If payment instructions change unexpectedly, call the agent to confirm the new details.
Tips to Keep Your Money Safe
Verify Email Requests: If you receive a request to change payment details, confirm with the agent via a phone call before transferring money.
Avoid Clicking Suspicious Links: Don’t click on links in unsolicited emails, as they might lead to phishing websites.
Use Secure Payment Platforms: Whenever possible, use secure services like BPAY or PEXA for payments rather than direct bank transfers.
Renting Privately?: If renting privately, ask for proof of the landlord’s identity and ensure they are registered with relevant authorities.
Contact Your Bank: If you suspect you’ve been scammed, contact your bank immediately and follow their instructions.
By staying informed and cautious, you can avoid falling victim to real estate scams and ensure your transactions are safe.
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