City Living, Pyrmont.
R&H
You are viewing an article that is not currently active

Scams Awareness Week 2024 is the perfect opportunity to shine a light on real estate scammers

August 21, 2024

As scams escalate, Scams Awareness Week 2024, from Monday, 26 August, to Friday, 30 August, is the perfect time to highlight the growing threat of schemes such as “payment redirection scams” targeting a variety of business transactions including real estate sales.

According to the Australian Competition and Consumer Commission (ACCC)[ii], in 2023, Australians reported losing $16.2 million to payment redirection scams. Although the total number of reports to Scamwatch dropped by 28%, the total amount lost to these cons, also known as “man-in-the-middle” scams, increased by 3%, showing that Australians lost significantly more money per scam compared to 2022.

The most common industries targeted by this scam are traditionally those that regularly deal with large transfers of money, such as the real estate, legal, and construction sectors. However, Scamwatch has received recent reports that car dealerships, travel companies, and their customers have also been targeted.

“Scammers are sophisticated criminals and are becoming more targeted in how they exploit Australian consumers and businesses,” ACCC Deputy Chair Catriona Lowe said. “These criminals are posing as genuine businesses that a consumer has recently dealt with, sending fake invoices with altered payment details so that the money ends up with the scammer.”

How the scam works

A bogus email appears to come from a business – whether it’s a car dealer, travel agent or real estate agent – the scammers know you are dealing with and are expecting an invoice from. The scam typically unfolds as follows: 

1. You make the payment, believing it’s going to the legitimate business.
2. Unbeknown to you, scammers have either accessed the business’s email account or altered the email address, changing the payment details (BSB and account number). Your payment goes to the scammer instead of the business.
3. You probably won’t realise something is wrong until the business contacts you demanding the payment of invoices you believe you have already settled. 


Even worse, man-in-the-middle scammers can trick anyone. A recent media report highlighted the case of a retired former bookkeeper who lost nearly $30,000 to scammers when she sold an apartment in June. Although the vendor received most of the proceeds from the property sale, the buyer’s deposit was mistakenly sent to the scammer.

How to protect yourself from payment redirection scams

Take your time before making any payments. Always call the business you’re dealing with using contact details you’ve independently sourced and ensure the payment details are correct. This extra step can prevent you from falling into a scammer’s web.

It’s crucial to question the legitimacy of any communication you receive. Ask yourself if you truly know who you’re dealing with. Scammers are skilled at making invoices look authentic by copying logos and ABNs. Be especially cautious if an email from a business you’re familiar with suddenly has altered banking details on the invoice.

If something feels off, act quickly. If you’ve shared financial information or transferred money, contact your financial institution immediately. Additionally, scams should be reported to Scamwatch to help protect others from becoming victims.

Speak up, share your story, and help stop scammers in their tracks

Scams Awareness Week serves as a vital reminder to stay alert and take action against scams that continue to threaten target individuals and communities across Australia. 

This year’s Scams Awareness Week, an initiative by the Federal Government’s Scamwatch, focuses on the theme “Share a Story, Stop a Scam.” The campaign urges Australians to fight back against scammers by sharing their personal experiences and helping others spot and sidestep scams. By using the hashtag #ShareAScamStory we can collectively raise awareness and make it more challenging for scammers to target Australians. 

Disturbingly, Scamwatch reports a staggering 30% of the most serious scams[iii] go unreported. Silence only benefits scammers, but by sharing experiences, starting with Scams Awareness Week 2024 allows individuals to protect each other. 

 
[i] https://www.accc.gov.au/media-release/beware-of-fake-invoices-from-scammers-impersonating-businesses#:~:text=Australians%20are%20being%20urged%20to,million%20to%20payment%20redirection%20scams.
[ii] https://www.accc.gov.au/media-release/beware-of-fake-invoices-from-scammers-impersonating-businesses#:~:text=Australians%20are%20being%20urged%20to,million%20to%20payment%20redirection%20scams
[iii] https://www.scamwatch.gov.au/system/files/scams-awareness-week-2024-key-statistics.pdf