From Email Scams to Fake Conveyancers, How to Spot Property Fraud in Australia

Twenty years ago, property fraud meant forged signatures and fake documents. It takes weeks of planning and specialised skills to pull it off, only the most dedicated criminals could succeed. 

Today, it can happen in a few clicks.

Modern property fraud has evolved into a sophisticated digital threat that can drain your life savings faster than you can say “settlement day.” We’re talking about criminals who intercept your house deposit via a single email, steal your identity to sell your home while you’re overseas, or manipulate digital conveyancing platforms to redirect hundreds of thousands of dollars into their own accounts.

What used to be the stuff of cautionary tales is now happening to everyday Australians and strikes at the heart of what most consider their greatest asset and source of security. For many, their home represents decades of hard work, sacrifice, and dreams for the future. 

So why is this happening more frequently?

The perfect storm has three key ingredients. 

1. Australian property values make for irresistible targets. With median house prices well into the six figures, a single successful scam can net fraudsters more than dozens of smaller cons. 
2. Most Australians buy or sell property only a handful of times in their lives, making them unfamiliar with proper procedures and more susceptible to sophisticated deception.
3. The rise of platforms like PEXA (Property Exchange Australia) has streamlined transactions and made them more convenient, but it’s also created new entry points for fraudsters who understand these systems better than the average property buyer or seller.

Let’s explore how these scams work and how to spot property fraud targeting Australian homeowners.

Common Property Fraud Methods

Learn how to spot property fraud by knowing exactly what to look out for. Remember, these are not random opportunistic crimes that we are talking about here. These are well-planned schemes that target specific weak spots in how property transactions happen in Australia. Here are the most common methods:

Email Interception Scams

Or the Deposit Redirect. This is perhaps the most devastating fraud for buyers, and it’s surprisingly simple. Criminals monitor email communications between buyers, sellers, and their representatives, looking for that critical moment when deposit instructions are sent.

Here’s how it unfolds: You’ve just had your offer accepted and you’re expecting bank details from your conveyancer or real estate agent. The fraudster, who has been monitoring email traffic, sends you a legitimate-looking email with slightly altered bank details. The email appears to come from your conveyancer, uses the same language and formatting, and arrives at exactly the right time. You transfer your deposit, often tens of thousands of dollars, directly into the criminal’s account.

A Queensland family recently lost $40,000 this way, transferring their house deposit to what they believed was their conveyancer’s trust account. 

Identity Theft for Property Sales 

In this more sophisticated scam, criminals steal enough personal information to impersonate property owners and sell their homes without consent. They target properties where owners might be temporarily unreachable – overseas travellers, elderly residents in care, or those going through major life changes.

Here’s how it usually pans out: The fraudsters use stolen identity documents to create convincing fake identification, then engage legitimate real estate agents and conveyancers to handle what appears to be a standard property sale. The entire transaction proceeds through normal channels while the actual property owner remains completely unaware that their asset is being sold.

PEXA Platform Manipulation

While PEXA (Property Exchange Australia) has revolutionised conveyancing, it’s not immune to fraud. Criminals exploit the platform through various methods:

• Account takeovers: Gaining access to legitimate PEXA accounts through compromised credentials
• Man-in-the-middle attacks: Intercepting communications between parties during settlement
• False identity verification: Using sophisticated fake documents to create fraudulent accounts

A Melbourne transaction saw $250,000 disappear mid-settlement through the PEXA platform when criminals manipulated the payment instructions during the final stages of the process.

Fake Conveyancer/Solicitor Schemes

These fraudsters set up fake law firms or conveyancing businesses, complete with professional websites, letterheads, and even office addresses. They target buyers who are shopping around for conveyancing services, offering competitive rates to win business.

Once engaged, they have access to all your financial information, property details, and transaction timelines. They might steal your deposit, sell your information to other criminals, or use your transaction as a cover for money laundering operations.

Settlement Day Sabotage

This method targets the final moments of property transactions when large sums change hands quickly. Fraudsters intercept last-minute instructions about settlement details – bank account changes, payment amounts, or timing adjustments – causing funds to be misdirected at the crucial moment.

The time pressure and complexity of settlement day make buyers and sellers particularly vulnerable to these rapid-fire changes that seem urgent and legitimate.

The Social Engineering Element

What makes all these scams particularly effective is their use of social engineering. Fraudsters don’t just rely on technical hacking, they manipulate human psychology. They create urgency (“The settlement is delayed, you need to transfer funds immediately”), exploit trust (“This is your conveyancer calling”), and prey on the natural stress and confusion that surrounds property transactions.

The criminals behind these schemes often have insider knowledge of property processes, legal terminology, and industry practices. They’re not opportunistic amateurs. They are professionals who understand that the combination of high values, infrequent transactions, and emotional investment makes property fraud a lucrative specialisation.

How to Spot Property Fraud

If something feels off about your property transaction, it probably is. Here are the warning signs that should immediately put you on high alert:

Suspicious Communication Patterns

Email inconsistencies: Watch for subtle changes in email addresses – fraudsters often use variations like “john.smith@lawfirm.com.au” instead of “johnsmith@lawfirm.com.au”. Check sender addresses carefully, not just display names.

Sudden communication changes: If your conveyancer or real estate agent suddenly starts communicating differently: new email address, different tone, unusual urgency, verify their identity independently.

Out-of-hours contact: Be wary of urgent requests received late at night, on weekends, or during holidays when you can’t easily verify information with legitimate parties.

Unusual Payment Requests

Last-minute bank detail changes via email. If you receive an email changing payment instructions, especially close to settlement, this is a major warning sign. Legitimate changes are rare and should always be confirmed through multiple channels.

Requests for payments to personal accounts. Legitimate property transactions involve trust accounts or business accounts, never personal banking details.

Pressure to pay immediately: Phrases like “urgent settlement requirement” or “transfer funds today to avoid delays” are classic fraud indicators. Legitimate transactions have proper timelines.

Weird payment methods: Requests for payments via cryptocurrency, gift cards, or money transfers to individuals rather than established trust accounts.

Requests for additional fees: Unexpected charges for “processing fees,” “urgent transfer costs,” or “platform updates” that weren’t mentioned initially.

Identity Verification Red Flags

Reluctance to meet in person: If your conveyancer or real estate professional consistently avoids face-to-face meetings or phone calls, question why.

Generic or low-quality documentation: Professional letterheads with poor formatting, generic email signatures, or business cards that look hastily made.

Inconsistent identification. Documents that don’t match, signatures that vary significantly, or identification that seems altered or suspicious.

Lack of proper credentials. Inability to provide professional registration numbers, ABN details, or other verifiable business credentials.

Generic or unprofessional communication. Emails from free accounts (Gmail, Hotmail) rather than professional domain addresses, or marketing materials that look hastily created.

Pressure Tactics and Rushed Timelines

Rushed timelines. Being pressured to complete transactions faster than normal industry standards without a reasonable explanation.

Unusual secrecy. Professionals who are evasive about their process won’t explain procedures clearly or discourage you from seeking second opinions.

Bypassing standard procedures. Suggestions to skip normal verification steps, avoid using established platforms like PEXA, or handle things “off the books” for convenience.

Inconsistent information. Details about the property, transaction, or parties involved that change between communications or don’t align with your research.

Documentation Warning Signs

Poor quality paperwork: Legitimate legal documents have consistent formatting, proper letterheads, and professional presentation. Spelling errors, formatting inconsistencies, or amateur-looking documents are red flags.

Missing standard clauses: Property contracts should include standard legal protections. If documents seem unusually brief or simple, they may be fraudulent.

Refusal to provide references: Legitimate conveyancers and real estate agents will readily provide client references and regulatory body registration numbers.

Requests for excessive personal information. While some personal details are necessary, be wary of requests for information that seem unrelated to the transaction.

Trust Your Instincts

Something feels “off.” Don’t dismiss gut feelings about people or situations. Property transactions can be stressful, but they shouldn’t feel suspicious or deceptive.

Too good to be true. Offers that seem significantly better than market rates, unusually low fees, or promises that sound unrealistic often are exactly that.

High-pressure sales tactics. Legitimate professionals educate and guide; they don’t use aggressive tactics or make you feel uncomfortable about asking questions.

The Golden Rule

When in doubt, verify independently. If something raises concerns, contact the professional using contact details you’ve obtained independently (not from the suspicious communication), ask questions, and don’t proceed until you’re completely satisfied with the answers.

Remember, legitimate professionals want you to feel secure and informed. Anyone who becomes defensive or evasive when you ask reasonable questions about security or verification procedures is showing you exactly why you need to be cautious.