Rising financial scams in real estate – how to protect yourself

Picture this scenario: you receive an email from a trusted source, but something seems off.

Maybe there’s a typo, or the greeting doesn’t use your name. But it looks legit enough, so you go ahead and follow the instructions. Next thing you know, you’re out thousands of dollars and feeling like a fool. Unfortunately, this is the reality for many Australians who fall victim to scams every year.

Take Kelly and her husband, for example. They were just trying to buy a house in Western Australia when they received an email from what appeared to be their real estate agent’s address. The email asked them to send their $25,000 home deposit to a subsidiary trust account due to ongoing bank audits. It seemed innocent enough, but it was actually a payment redirection scam. The couple never saw their money again.

Sadly, this is just one of the many scams reported last year, with Aussies losing over $568 million to scams in 2022. It’s becoming harder to spot these scams, as they’re getting more sophisticated. Scammers are setting up fake websites, phone numbers, and emails that look like the real thing. Yikes!

What can you do to protect yourself?

First and foremost, beware of common red flags. Look out for typos, deals that seem too good to be true, and greetings that don’t use your name. If something seems suspicious, dig deeper. Look up reviews or verify the seller’s contact details and location to make sure they’re legitimate.

Another key tip is to beware of requests for additional payments. If you’ve already made a purchase, there’s usually no need to pay any extra fees. Be cautious of refund offers, particularly those made by scammers apologising for overpayment and requesting payment information to process the refund.

For larger payments, such as legal fees or deposits, make a phone call to confirm the legitimacy of the invoice and its details. Consider using a password manager, and enable two-factor authentication. Keep your software up to date with the latest security patches and software updates. And consider subscribing to credit monitoring services, like Equifax, illion, or Experian to help manage your credit profile and reduce the risk of identity theft.

As Philip Bowrey, business information security officer at Equifax, said: “It’s gotten to the point where we need to accept that everyone’s phone or email address is available to scammers somewhere. This means we need to shift our thinking from not if we’ll be targeted by a scammer – but when. And when we do, knowing what steps we can take to avoid falling for a scam.”

In today’s digital world, cybersecurity is more important than ever. By following these tips and best practices, you can protect yourself and your information online and stay safe from cyberattacks. Stay vigilant and stay safe out there!

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