The excitement of selling a property can quickly turn into a nightmare when scammers get involved.

Even the savviest individuals can fall prey to scams, leaving them tens of thousands of dollars out of pocket.

This is a stark reminder for those considering selling their property to be vigilant and informed about the risks involved in real estate transactions.

Lily, a retired bookkeeper and disability pensioner, looked forward to financial security after selling her two-bedroom apartment.

However, her relief turned to shock when she discovered that $26,000 of the sale proceeds had been transferred by her real estate agent, HT Wills Real Estate, to a scammer's account.

This was a significant financial blow to Lily, who relied on money for her living and medical expenses and her reliance on National Disability Insurance Scheme (NDIS) support.

Lily's earnings vanished into thin air after scammers intercepted her transaction with her real estate agent. Image Credit: Pexels/Pavel Danilyuk

After providing her bank details to her agent, a scammer intercepted their transaction by sending a follow-up email that appeared to be Lily's.

The scammer then directed the agent to transfer funds to a different bank account.

The agent completed the transfer to the said account.

'I worked so hard for 25 years until my vision got so bad that I couldn't work, so I had to retire early,' Lily lamented.

'Now I'm trying to save for the future, but the money's gone.'

The scam that targeted Lily is known as a payment redirection scam or a 'man in the middle' scam.

Payment redirection scams involve cybercriminals hacking into a business's email account to intercept payments.

Scammers involved in this scheme could also create a similar-looking email address to reach out to victims.

Victims make a payment and then get duped into transferring funds to the fraudster's account.

According to the Australian Competition and Consumer Commission (ACCC), real estate, legal, and construction industries are particularly vulnerable to these scams.

However, car dealerships and travel companies were recently targeted by these scammers as well.

This incident highlights the importance of verifying all payment details directly with the involved parties, especially when large sums of money are at stake.

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Former policeman and Cybertrace's Intelligence Officer Dan Halpin advised businesses to confirm client details over the phone, using information only the legitimate parties would know.

The ACCC's latest data showed a slight decrease in reported scams and financial losses, but experts like Halpin are sceptical.

They believe the actual number of victims may be higher, as many choose to report directly to private agencies rather than government bodies.

Following Lily's incident, the Real Estate Institutes of NSW, Victoria, Queensland, and WA, along with the ACCC, strongly recommended verifying payment details by a trusted phone number before transferring any funds.

Queensland's real estate industry also included a cybercrime warning on its sale of land contracts.

Here are some steps you can take to protect yourself from payment redirection scams:

• Always verify payment details by calling a known and trusted number, especially after receiving a last-minute change via email.
• Be wary of any unexpected emails requesting payment or personal information.
• Use strong, unique passwords for your email accounts and change them regularly.
• Consider two-factor authentication for additional security on your email and bank accounts.
• Keep your computer's antivirus software up to date to protect against malware.
• If you need clarification on an email's legitimacy, contact the supposed sender through a separate communication channel.

Remember, if something feels off, trust your instincts and double-check.

It's better to take the time to confirm than to rush and risk losing your hard-earned money.

Key Takeaways

• Lily, a retired bookkeeper, fell victim to a payment redirection scam and lost about $26,000 in sales after selling her property in Sydney.
• Scammers intercepted communication between Lily and her real estate agent and directed the agent to transfer deposit funds to their account rather than Lily's.
• Despite recent ACCC data indicating a decline in reported scam cases and losses, experts suggested underreporting might skew the perception.
• Cybertrace Intelligence Officer Dan Halpin advised businesses to verify identities and payment details through direct phone calls to prevent such scams.

Have you or someone you know fell victim to payment redirection scams? Let us know your thoughts and safety tips in the comments below.

 

[Rockyd]

Just a phone call from the agent to confirm the bank account change would have saved this lady's loss. The agent is at fault & should be liable for the loss.

 

[kerrikennel]

Hopefully the agents have insurance and this is covered. They should reimburse this woman.

 

[mylittletibbies]

Hopefully the agents have insurance and this is covered. They should reimburse this woman.

They certainly should. This scam has been around for quite a while now and any real-estate agent worth their salt should be aware of it.
One question, why was this money being transferred by the real estate agent and not the conveyancer. Strange??

 

[GrannyJA!]

Just a phone call from the agent to confirm the bank account change would have saved this lady's loss. The agent is at fault & should be liable for the loss.

Exactly, it should be the agent's loss and not their customer's. I hope the lady has explored all her legal options.

 

[Clancieblue]

The agent should have checked and needs to reimburse the client.

 

[Squizzy1]

That sounds very remiss of the Realter, surely this isn't Lily's loss?

 

[mylittletibbies]

That sounds very remiss of the Realter, surely this isn't Lily's loss?

I still don't understand why the real-estate agent was handling this transaction.
This is the job of the conveyancer (settlement agent).
Usually the only money the real-estate agent would handle is the original deposit.
I never give anymore than $1000 holding deposit to a real-estate agent.

 

[Rob44]

Pay bills by cheque. Transfer your money by cheque. THAT is the most secure way of doing those jobs.

The internet is a curse, these days

 

[Veggiepatch]

Hopefully the agents have insurance and this is covered. They should reimburse this woman.

Nah! Get the agent to reimburse Lily through the proceeds of the sale of their house, car and other assets.

That'll teach 'em!

 

[Tootie]

The agent would have been involved if there were funds left over from purchaser's deposit, in which case they were responsible for transferring them to the vendor, which would seem to be the case here. All other settlement funds are transferred by the conveyancer/lawyer.

 

[mylittletibbies]

The agent would have been involved if there were funds left over from purchaser's deposit, in which case they were responsible for transferring them to the vendor, which would seem to be the case here. All other settlement funds are transferred by the conveyancer/lawyer.

Usually the deposit is taken into account at settlement, not handed back to the purchaser.
All funds are supposed to be handed over at settlement, including the deposit by the conveyancer.

 

[Tootie]

I recently sold my previous property. My selling agent transferred the remainder of deposit funds paid by the purchaser, to my account on settlement. My lawyer who represented me for the sale paid the remainder into my account. That is how it works.

 

[mylittletibbies]

I recently sold my previous property. My selling agent transferred the remainder of deposit funds paid by the purchaser, to my account on settlement. My lawyer who represented me for the sale paid the remainder into my account. That is how it works.

Where do you live, I have purchased over 40 properties in three different states and have never had this happen.
Perhaps as you used a lawyer and not a conveyancer, unusual??

 

[Luckyus]

The fault as I see it lies with the Real Estate Agency, so she yhe seller shouldn't be out of pocket.

 

[Old timer]

Pay bills by cheque. Transfer your money by cheque. THAT is the most secure way of doing those jobs.

The internet is a curse, these days

Banks are phasing out cheques.

 

[Luckyus]

Banks are phasing out cheques.

Bastards of low degree?

 

[David567]

If I was going to transfer that amount of money, I would be double checking, triple checking and quadruple checking the bank details and be sitting in the office concerned to check them again with the receiver before hitting the send button. I don't trust ANYBODY when money is concerned.

 

[Kevin. A.]

The real-estate agent is at fault here for not personally verifying the detail with a known contact phone number to ensure the account transfer details were correct. The police should be able to trace where and what device the email came from and hold the culprit responsible accountable.

 

[Kevin. A.]

The fault as I see it lies with the Real Estate Agency, so she yhe seller shouldn't be out of pocket.

Yes, I agree the real estate agent is responsible they should have checked directly with the lady before transferring any funds.