Cybercrime is all around us, it seems. Large sums of money are increasingly being lost by victims who are involved in the conveyancing process – ie, buying or selling a house.
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In 2017, two victims in SA lost nearly $1 million in just two rip-offs.
A woman buying a house in the Western Suburbs lost $558,000 in 2017.
A purchaser in the Eastern Suburbs paid $100,000 for stamp duty; it was the wrong account.
A few months ago in Grafton, a purchaser lost half a million dollars.
The thefts work by the scammer intercepting emails between lawyers, conveyancers, real estate agents and clients.
It happens like this - a real estate agent might send an email to a purchaser giving its bank account details for the payment of commission to its trust account; or a solicitor might send an email for the payment of stamp duty to their trust account, or a conveyancer might send an email requiring payment of settlement monies to their trust account; or a client might send an email advising bank account details for the payment of the settlement proceeds, or to the agent for the payment of the balance deposit back to the vendor after settlement.
The scammer intercepts the email and changes the BSB and Account numbers so that monies are directed to be paid to the wrong account. In some cases the email looks like but is not quite the same as the proper sender’s email account. In some cases the correct email account is shown as the correct sender’s email account.
It’s really important that clients pick up the phone and check those details with their lawyer, conveyancer or real estate agent. Ring the firm on a telephone number sourced NOT from the email. Speak to someone you know. The critical numbers to verify are the BSB and Account number.
So, be wary of emails requesting you to transfer funds and providing BSB and Account numbers. Be especially wary of emails amending previously advised details – as in ‘new account details for payment..’. It is not likely that your solicitor or agent will have changed their banking details in the course of the transaction.
Always, pick up the phone and check with your lawyer/conveyancer/real estate agent the BSB and Account number. Once the money has gone (and it goes quickly) its gone for good. And in conveyancing transactions, it is often a lot of money.
This scam isn’t just used in conveyancing circles. It is increasingly being used to misdirect payments to tradesman.
If you have gone to a site which has asked you to key in your password you use to access your emails, and you have, go to your email site and change your password, now. Or phone your internet service provider for help in how to do that.
Joan Pierpoint, Solicitor
