Protect Yourself Against Payment Redirection Scams
Payment redirection scams, where scammers impersonate conveyancers or real estate agents to provide false account numbers and redirect payments, have become alarmingly prevalent. According to the latest figures from the Australian Competition and Consumer Commission (ACCC), Australians lost more than $3 billion to scammers in 2022, including significant losses from payment redirection scams.
Prevalence of Payment Redirection Scams
As house prices rise, scammers are using increasingly sophisticated methods to intercept electronic money transfers. These scams, often referred to as business email compromise scams, have resulted in losses of $225 million intended for conveyancers to purchase new homes. The ACCC’s Scamwatch receives an average of two reports a week related to these scams linked to real estate transactions.
Recent media reports highlight the severity of these scams. One case involved a homebuyer who inadvertently sent $284,000 to a scammer’s account after the email chain with his conveyancer was hacked. Another tragic instance saw a young couple lose their $25,000 house deposit to a property scam.
Steps to Avoid Payment Redirection Scams
Scammers are adept at hacking email accounts to impersonate conveyancers or real estate agents, providing false account numbers to divert funds. To protect yourself, follow these steps:
- Verify Email Addresses and Account Numbers: Even if you have been corresponding with a conveyancer for some time, double-check that the email address and account number are correct. Avoid hitting “reply” or clicking on links within emails, as hackers often alter just one letter in an email address to deceive you.
- Avoid Using Contact Information from Suspicious Emails: Never call the phone number provided in a suspect email. Instead, use a phone number you received independently and speak to the person you have been dealing with previously. Always double-check the account number before sending any money.
- Be Wary of Urgent Emails: If you receive an email that creates a sense of urgency, don’t rush. Verify the email’s authenticity by contacting the company directly, using a number you obtained earlier. If the email instructs you to change payment details, confirm with the company involved before making any changes.
- Follow Money Transfer Precautions: Law firms like Stacks Law Firm advise clients to always verify bank account details by phone before making any money transfers. They attach warnings about potential scams to their emails to alert clients to the risks.
What to Do if You Discover a Payment Redirection Scam
If you fall victim to a scam, contact your bank immediately. The bank may be able to stop the transfer if notified within three days. If you are unsatisfied with the bank’s response, seek legal advice. This is particularly advantageous if your conveyancer is associated with a law firm.
For additional support, the national cyber support service IDCARE can help victims develop a plan to mitigate the damage. The new National Anti-Scam Centre is also coordinating efforts to combat scammers. The ACCC offers numerous resources to educate Australians on avoiding scams and protecting themselves.
For more information, visit the ACCC’s Scamwatch website.
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