Photo by Mikhail Nilov
🏡 A Growing Threat in the Aussie Property Market
Settlement scams are surging across Australia, with shocking new research revealing that 97% of recent property buyers and sellers would fail to detect scam red flags in settlement emails. These scams, powered by AI-driven technology, are now among the most financially devastating cybercrimes in the nation.
The research, released by property exchange platform PEXA, highlights just how vulnerable Aussies are when transferring hundreds of thousands – or even millions – of dollars in property transactions.
📈 Scam Losses Skyrocket
The ACCC reported property scam losses climbing from $13 million in 2021 to $43.2 million in 2024. Cases include:
- 👩❤️👨 A Sydney couple losing $970,000
- 🏠 A WA buyer losing $732,000
- 👵 A retiree nearly tricked into sending $800,000 after a fake conveyancer email – caught just in time
Unlike fraudulent credit card transactions, money stolen in settlement scams is often irretrievable.
🔑 How the Scam Works
Scammers typically hack or impersonate solicitors, conveyancers, or real estate agents, then send buyers “updated” bank details for settlement payments or deposits.
Red flags include:
- ⚠️ Last-minute change of bank details
- ⚠️ Urgent requests for payment
- ⚠️ Slightly altered email addresses
- ⚠️ Requests outside secure platforms
Stress, urgency, and the high stakes of property deals make it all too easy for even savvy buyers to fall victim.
🤖 AI Supercharges Scams
PEXA’s chief information security officer, Graham Fairley, warns that scammers are exploiting exactly what property deals rely on: big sums, short deadlines, and heavy email reliance.
With AI technology:
- 🎙️ Voice cloning can replicate solicitors, agents, or even family members
- 📧 Hyper-realistic phishing emails can bypass scepticism
- 🎥 Video and celebrity endorsements can drive fake investment scams
Simon Birmingham, CEO of the Australian Banking Association, warns: “AI scams sound real, look real, and feel real. That’s what makes them so dangerous.”
🛡️ How to Protect Yourself
Renowned architect and PEXA Scam Awareness Ambassador Peter Maddison stresses the need for vigilance:
✅ Always double-check unsolicited or urgent requests ✅ Verify bank details via phone on a known number ✅ Use secure platforms for all communications ✅ Pay attention to Confirmation of Payee (CoP) warnings
Tips to Beat AI Scams:
- 🕵️ Verify identities – if a call seems suspicious, hang up and ring back
- ⏸️ Pause before reacting to emotional or urgent calls
- 🎬 Ignore celebrity-backed investment videos without independent research
- 🔒 Never share PINs or passwords by email or text – banks will never ask
📢 The Bottom Line
Australia is facing a property scam epidemic, where AI is being weaponised to target home buyers and sellers at their most vulnerable point. With settlement amounts often exceeding hundreds of thousands of dollars, scammers know one mistake can be a jackpot.
The best defence? Scepticism, secure communication, and double-checking everything before pressing “transfer.”