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.

 

[Cheezil]

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.

Came here to say the same, but bet this doesn't happen!

 

[Rain72]

How is it the retiree's loss? The real estate agent sent the money to the wrong account. The client did nothing to facilitate that. The agent stuffed up by not verifying. The agent should make up the loss.