Homebuyers Beware: Spring Selling Season Begins

As the peak Spring selling season begins, would-be homebuyers are being warned to protect their cash following a string of property-related scams.

Over the past fortnight, prop tech firm InfoTrack has seen a five percent increase in the number of property contracts being prepared for new sales, as we head into what is traditionally the busiest time of year for real estate transactions.

InfoTrack’s Head of Securexchange, Alexander Antal, said despite feeling under pressure to purchase quickly, buyers must remain vigilant, as the market heats up.

Earlier this month, a New South Wales couple was scammed out of their $49,000 settlement funds, while a Victorian couple lost $500,000 after their conveyancer’s email was hacked.

“Cybercriminals have their sights set on property transactions because not only are deposits in the tens of thousands and upwards, copies of passports and driver’s licences are exchanged to verify ID, potentially exposing buyers to identity theft and fraud,” Mr Antal said.

“The transaction process is often unknown territory for homebuyers and throw in a quick decision-making process and a high-stress environment, and buyers may not necessarily be as alert to scams as they would normally be.”

The most effective way to safeguard funds is to ensure that all communication channels are secure and to use trusted platforms for transactions.

“Our advice is to ask your lawyer, conveyancer, and real estate agent how they plan on sharing sensitive and confidential information and insist they use a secure platform to protect your money,” Mr Antal said.

“Don’t send back account details via email. All communication related to the transaction should be secure, taking away the opportunity for scammers to hack into emails and contact buyers.”

Other measures include:

• If you receive an email from your lawyer, conveyancer or real estate agent’s email address asking you to transfer funds, call them to verify it’s a legitimate request.
• If you think you have been scammed, report it and update your banking details and passwords to limit further fraudulent transactions.

Securexchange was launched in 2019. In the last financial year, it has protected over 38,831 property fund requests, safeguarding more than $6.2 billion in real estate assets from cyber threats.

About InfoTrack

InfoTrack is the leading innovator in legal technology and a pioneer of property conveyancing automation in Australia. They provide an integrated platform that enables their clients to find, analyse, organise, and communicate information efficiently and effectively. InfoTrack has been at the forefront helping businesses through technology innovation for over 21 years and has a deep understanding of the legal and conveyancing industry with over 8,000 legal clients across Australia.