Buying a property is the biggest financial move most Australians ever make—the median metro house runs $932,000, and the average metro unit sits at $649,000. That scale of money moving through email chains and settlement processes makes the sector a prime target. Australians lost over $2 billion to scammers last year, with at least $5 million of that in real estate alone. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
The threat isn’t hypothetical. A Western Australian woman lost $732,000 after scammers intercepted her email communications with her settlement agent—confirmed by Consumer Protection WA. A Sydney couple was swindled out of close to $1 million in a similar incident. These aren’t rare edge cases; they’re the result of a system where large sums move through channels that were never designed to be secure. Before you exchange a single dollar, it’s worth understanding how property ownership and transfer laws actually work in Australia, because the legal framework matters as much as the practical safeguards.
How the Three Main Purchase Scams Actually Work
Payment Redirection (Business Email Compromise)
This is by far the most common attack in Australian real estate right now. Scammers pose as someone you trust—your mortgage broker, conveyancer, or real estate agent—and email you with what looks like a legitimate invoice or payment request. The email addresses are often nearly identical to the real one, complete with professional signatures and authentic-looking letterhead. According to PEXA’s Settlement Scams Index, payment redirection scams, also known as business email compromises, are the most prevalent in the industry. A recent example: a scammer posing as the partner law firm Home-in emailed a customer requesting immediate payment of $316,000 to a fraudulent trust account. The customer had only ever communicated via the firm’s app, spotted the anomaly immediately, and contacted Home-in through the secure channel—avoiding the loss entirely.
Social Media Rental Scams
Leasing scams target people who are desperate to secure a rental in a tight market. Scammers pose as property managers, post fake advertisements on social media marketplaces, and sometimes even meet the renter outside the property to make the listing feel real. They offer a false lease agreement and request the first month’s rent and bond upfront. A clear red flag: if you’re asked to pay bond and first month’s rent into the same account, that’s fraud. Every state has established bond authorities that are legally required to hold the bond in trust for the duration of the tenancy—it never goes to the property manager directly.
Property Title Theft
Title theft is less common than payment redirection but devastating when it happens. In the US it’s sometimes called deed fraud; in Australia it’s property title theft or real estate fraud. Andrew Grima, a partner at Bartier Perry Lawyers in Sydney with over 30 years in property law, notes that electronic titles and the PEXA platform have made fraud significantly harder than it was in the days of paper certificates. Before any representative can register a dealing or attend settlement, they must officially certify they’ve carried out verification of identity. Still, fraud can’t be ruled out entirely—especially given major data breaches at Optus and Medibank that put identifying information in criminals’ hands. One inexpensive protective strategy: lodge a caveat on your own property. That way, no one can register an interest or dealing without your knowledge, and you’ll be notified of any lodgement affecting your title.
Confidence Is Dropping as Scams Get More Sophisticated
PEXA’s research, conducted ahead of Scams Awareness Week 2026, tracked how Australian homebuyers’ confidence in spotting scams has actually fallen. In 2025, 51% of buyers felt confident they could identify a scam. By 2026, that figure had dropped to 41%—not because scams are harder to see, but because people are more aware of how convincing they’ve become. The same survey found that 87% of Australians consider buying a property one of life’s most stressful events, up there with divorce and moving cities. Greater scam sophistication adds pressure to an already tense process.
AI voice cloning is a newer concern. 60% of Australians are now aware of it, and 62% listed it as a known scam type in 2026. When presented with a scenario where someone received a call from an unrecognised number with a voice that sounded like their agent, only 5% thought it was OK to transfer the requested funds—but that still means one in twenty would proceed.
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| Scam Type | 2025 Awareness | 2026 Awareness |
|---|---|---|
| Phishing | 79% | 81% |
| Sale / rental listing scams | 62% | 79% |
| Property investment scams | 57% | 63% |
| Settlement scams | 54% | 61% |
| AI voice cloning | N/A | 62% |
| Credential stuffing | 54% | 59% |
The real-world losses back up the concern. Beyond the WA woman and the Sydney couple, the FBI Internet Crime Complaint Center received 9,521 reports of real estate fraud in 2023, with losses exceeding $US145 million (roughly $AUD227.6 million). Australia’s numbers are smaller but the pattern is the same—and the emotional toll, as the NSW Minister for Better Regulation put it, is often worse than the financial one.
Where Buyers Slip Up and How to Fix It
Trusting Email for Sensitive Information
Email is not a secure channel for exchanging bank account details, yet it remains the default for many transactions. PEXA’s research found that 38% of buyers would transfer funds after receiving a scam email—and when shown a mock scam email, four in ten couldn’t identify any red flags at all, even after being told the email was fraudulent. The two telltale signs in that test were the urgency of the request (a classic fear tactic) and a false letter ‘a’ in the email address. Only 0.7% of respondents spotted the fake character. The Australian Cyber Security Centre advises checking the spelling of the sender’s domain name against previous correspondence and, most importantly, using verbal communication instead of email to provide bank account details.
Not Verifying Bank Account Details
The good news is that 66% of Australians would meet their agent or conveyancer in person before sharing bank account details, and 54% would call them on a known phone number to confirm. The bad news: 14% would share bank details over email or SMS, and 2% wouldn’t verify the details at all. When you’re moving hundreds of thousands of dollars, a single phone call to a number you’ve used before is the cheapest insurance you can buy. David Willett, PEXA’s Chief Information Security Officer, puts it bluntly: do not use email for exchanging bank account details during settlement. It’s not secure and it places you at heightened risk.
Skipping the Secure Tools You’re Offered
Secure digital platforms exist specifically to eliminate the email risk. PEXA’s data shows that 59% of recent property buyers were offered a secure tool such as PEXA Key to share payment and settlement information during their purchase. Of those, 82% chose to use it. But 25% of buyers who were offered a tool decided not to use it, and 41% of buyers weren’t offered one at all. If your conveyancer or agent doesn’t bring up a secure option, ask about it. PEXA Key encrypts all data and automatically transfers it into the platform—and if the communication of bank account details between you and your practitioner is corrupted or compromised due to fraud, you can be reimbursed up to $2 million.
What Actually Protects You
Frequently Asked Questions
What should I do if I receive a suspicious email asking for a deposit? ▾
How can I tell if a rental listing is a scam? ▾
What is the Torrens Assurance Fund and who can claim? ▾
Should I use PEXA Key or a similar tool? ▾
What should I do if I’ve already transferred money to a scammer? ▾
The One Habit That Cuts Most of the Risk
The common thread across every scam type in this article is that they all rely on you acting without verifying. Payment redirection works because you trust the email. Rental scams work because you trust the listing. Title theft works because you trust the identity. The single habit that breaks most of these attacks is picking up the phone and calling a number you already know—not one from a message you just received. PEXA’s research backs this up: 66% of Australians would meet in person before sharing bank details, and 67% would call the agent’s office main line to confirm a suspicious request. That instinct to verify is the right one. Trust it, even when it feels awkward. If this was useful, you might also want to read decoding Australian housing market cycles before you buy.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
Sources and Further Reading
Tips for community housing eligibility when buying in Australia — A practical guide if you’re exploring affordable home ownership pathways alongside the private market.
Understanding real estate agent commissions when buying a home — What agents actually charge and how those fees factor into your overall purchase costs.
Money Magazine (2025). Avoid common real estate scams. 🔗
PEXA (2026). Settlement Scams Index 2026. 🔗
PEXA Content Hub (2026). The scam targeting buyers and sellers and how you can stay safe. 🔗
Law Society Journal NSW (2025). Property pirates: how lawyers can protect their clients from title scams. 🔗
Australian Cyber Security Centre. Recognise and report scams. 🔗
NSW Registrar General. Torrens Assurance Fund Information Sheet. 🔗
