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As scammers become more sophisticated, Australian individuals and businesses are losing higher amounts of money.
This Scams Awareness Week, real estate networks and consumer bodies have warned both buyers and businesses to be on the look out for real estate scams.
While the total number of reports to Scamwatch has declined this year by 28 per cent, the amount of money lost to scams is on the rise, indicating that Australians are losing higher amounts of money to scams.
Raine & Horne noted that business professionals must be just as vigilant as everyday consumers, warning that “man-in-the-middle scams can trick anyone”.
“A recent media report highlighted the case of a retired former bookkeeper who lost nearly $30,000 to scammers when she sold an apartment in June. Although the vendor received most of the proceeds from the property sale, the buyer’s deposit was mistakenly sent to the scammer,” stated Raine & Horne.
Man-in-the-middle attacks occur when a scammer inserts themselves into a conversation between two legitimate parties, eavesdropping on their exchange in order to gather information.
In the past, poor grammar and spelling was a surefire warning sign of scammers, but the rise of artificial intelligence has made it easy for scammers to create highly professional emails and messages.
Scam artists often break into a victim’s emails early on in order to gather information about any businesses they are in regular contact with, or any contracts they are preparing to sign.
Once the victim is preparing to sign a contract, the scammer sends an email posing as the solicitor, but with an altered BSB and account number.
“You probably won’t realise something is wrong until the business contacts you demanding the payment of invoices you believe you have already settled,” said Raine & Horne.
A recent Sydney Morning Herald article shared the story of a pair of young first home buyers who lost over $48,000 in a real estate scam.
Fake mule bank accounts had accessed their settlement funds, and the couple’s many hard years’ worth of savings had vanished overnight.
Northern Territory Consumer Affairs stressed that it was essential for those who fall victim to scams to report their experiences.
“Scammers are criminals who manipulate and deceive you into giving them your money or personal information. They deliberately induce feelings of shame, guilt, self-doubt and distrust,” the consumer watchdog said.
“If you have identified or encountered a scam, it is important that you share your story with someone,” said NT Consumer Affairs. “The more we talk, the less power they have.”
