Buying a home is a huge milestone and usually a pretty exciting one. It is also one of the biggest financial transactions most people will ever make, which unfortunately makes it a prime target for scammers.
One scam in particular, known as a property payment redirection scam or settlement scam, is becoming more common and more costly. Industry warnings from realestate.com.au and property exchange platform PEXA show that these scams are on the rise across Australia, with losses increasing year on year.
What is a property payment redirection scam?
A payment redirection scam usually happens in the lead-up to settlement, when buyers are exchanging emails with their real estate agent, solicitor or conveyancer. Scammers impersonate one of these trusted professionals and send an email that looks legitimate, often advising that bank account details have changed or need to be updated.
Realestate.com.au reports that these emails are often timed carefully to coincide with settlement deadlines, when buyers may be feeling rushed or overwhelmed. If the buyer follows the instructions, their deposit or settlement funds are transferred directly into the scammer’s account instead of the correct one.
Why these scams are so convincing
What makes this scam particularly dangerous is how realistic it can be. Fraudsters may use email addresses that differ by only a single letter or character, or copy logos, signatures and wording from earlier legitimate emails.
According to PEXA, scammers rely heavily on the volume of communication involved in a property purchase and the assumption that last-minute changes are normal during settlement.
How common is this scam?
The scale of the problem is larger than many people realise. Research conducted by PEXA found that 97 per cent of Australians who had recently bought property, or were planning to buy, failed to identify warning signs in scam settlement emails, even though most believed they would be able to spot a scam.i This research highlights how difficult these scams can be to detect in real-world situations.
The financial impact is growing rapidly. Reporting shows that losses linked to property buying and selling scams rose from around $13 million in 2021 to more than $43 million in recent years.ii This sharp increase reflects both the growing sophistication of scammers and the high value of property transactions.
Real-world examples include buyers losing hundreds of thousands of dollars after following fake payment instructions, with some individual losses exceeding $700,000 and even up to $900,000.
Disturbingly, PEXA’s Scam Awareness White Paper further found that around 40 per cent of people surveyed said they would still transfer funds after receiving a fraudulent settlement-style email, demonstrating the gap between confidence and actual scam detection.iii
Why property buyers are targeted
Property transactions are especially attractive to scammers because they involve large sums of money, strict timelines and frequent email communication. Buyers often expect last-minute requests and document changes, which makes an unexpected email feel normal. Realestate.com.au notes that scammers take advantage of this pressure, knowing that urgency can cause people to act quickly without verifying details.
How to protect yourself
- Any request to change payment details should always be confirmed by calling your solicitor, conveyancer or agent on a phone number you already trust.
- Treat last minute, unexpected or urgent emails with caution, particularly if they push you to act immediately or discourage you from double-checking.
- Do not use contact details from the email itself.
- Use secure platforms like PEXA Key to share bank details instead of email.
- Check email addresses carefully for small differences or unusual domains.
- Enable multi-factor authentication on your email account to avoid it being intercepted.
- Consider sending a small amount of money first and confirm it arrives.
- Watch for bank alerts, such as Confirmation of Payee warnings.
If you suspect a scam: contact your bank immediately, report it to Scamwatch and the Australian Cyber Security Centre, and notify your agent, conveyancer, and the police.
It is unsettling to know that scammers target people during such an important life moment, but awareness really is your strongest defence. With property scam losses continuing to rise across Australia, staying alert, asking questions and verifying payment instructions is more important than ever.
Buying a home should be exciting, not stressful, and if something does not feel right, it is always okay to pause and double-check before transferring any money.
ii https://www.realestate.com.au/news/popular-property-scam-on-rise-as-nearly-every-aussie-fooled/
iii https://www.pexa.com.au/staticly-media/2025/08/Scam-Awareness-White-paper-final-sm-1756101694.pdf
