Scams, Fraud and Cybercrime have unfortunately become an everyday part of our lives especially in the property mnarket.  They are becoming more sophisticated and complex and the people conducting them more determined. Emails or messages are received that look totally convincing and are sent as URGENT, or say ‘you must act now to prevent….’.  Some have even said the police will be sent round to arrest you!

There are many ways that scammers get in contact with you:

‘Phishing’

This is a type of cybercrime where attackers try to trick individuals into revealing sensitive information like passwords, credit card details, or personal data. They often do this by sending fraudulent emails, text messages, or creating fake websites that mimic legitimate organizations. The goal is to steal money, identities, or gain access to system and often there is a ‘Click Here or Update Now’ type button in the content of the email or message

‘Vishing’

Next comes ‘vishing’ which is a cyber attack where scammers use phone calls or voice messages to trick victims into revealing sensitive information by impersonating trusted sources.  Similar to phishing, vishing relies on social engineering tactics but it exploits the perceived authenticity of voice communication to manipulate victims.

Vishing is successful because the interaction is often immediate.  When someone is on the other end of the phone, people are more likely to react faster.

 ‘Smishing’

Then there is ‘smishing’.  This is also like ‘phishing’ in that it’s a social engineering attack in which message can look genuine but instead are used to deceive people into installing malware, giving sensitive information, or sending money to cybercriminals. Scammers employ smishing as a tactic because people are more likely to trust text messages (SMS) over emails, which makes SMS a more effective vector for phishing attacks. This trust likely stems from the historical association of SMS with personal or official communication and the lack of robust security measures compared to email, which has long been associated with spam and phishing.

So in summary ‘phishing’ mainly uses emails to trick you, ‘vishing’ uses voice to phish you whereas ‘smishing’ uses mobile text messages (SMSs)

Whatever you do NEVER give your bank details or your PASSWORDS. Often these scammers will include links to click on or phone numbers to call. Do NOT click on any links. If this happens to you, contact the relevant institution or person directly yourself. Do NOT reply to any numbers or email address on the suspicious communication, find the number yourself by looking it up or calling them on a number you may have previously used. There have been cases of these scammers keeping the line open so when you call back you are still talking to them. Make sure you disconnect the line, wait a while and then redial another number. If you are still unsure do not engage further and if you are really worried simply call the police.

We, as Conveyancers will never ask for your bank details by email or phone (unless we are calling you to confirm what you have already given us). We will never mind you calling us to check if any requests were genuine.

See more on this website:  https://www.police.sa.gov.au/your-safety/scams-and-cybercrime

The Australian Institute of Conveyancers (SA Division) regularly updates its members on scams which affect the property industry and those which have been clearly targeting us as conveyancers. Recently a number of members have received emails with a ‘contract’ attached and even for us it is becoming increasingly difficult to know the genuine from the fake.  These may create situations where the data kept on those computers and servers are vulnerable and subject to being hacked.  These cyber- crimes are the new way of scamming money and can be very costly to all parties concerned.

Conveyancing scams

There a a few people in South Australia and also other states that have so far fallen victim to a sophisticated fraud in which the scammers use hacked information to pose as a home buyer’s personal conveyancer and instruct them to transfer the purchase money into a fraudulent trust account.

Lawyer Darren Kruse was representing one of the South Australian victims, who wishes to remain anonymous.

“She’s potentially lost over half a million dollars and her transaction is at risk,” Mr Kruse said.

In Western Australia an elderly lady had a significant lost after hackers intercepted an email from her conveyancer/settlement agent. The original email provided the conveyancers bank account details for the deposit of settlement funds. The hackers amended the email to provide their own new bank account number. Unfortunately, this was discovered too late and the funds were deposited in the new account, never to be seen again. The lady has not only lost the money, also faces legal implications for her because she is now not able to settle the property.

Another example was when a real estate agent/property manager had their email account hacked into and tenants were requested to pay the rent and bond payments into a different account than the one they were originally advised.  This scam got picked fairly early as the property managers father luckily happened to be one of the tenants and became suspicious so the amount lost was reasonably small. But can you imagine if he wasn’t – people could have unwittingly paid months of rent into an account that they were unlikely to get back.

All incidents were reported to the relevant agencies such as The Australian Cybercrime Online Reporting Network (ACORN) and the relevant states Police Major Fraud Squad. It is not clear if the incidents were linked but it appears they have all been carried out by overseas criminals.

Be Alert and ask questions

 Conveyancers, settlement agents and anyone else dealing with property transactions have been advised to be on high alert and we always take great care to protect our clients and ourselves.

Buyers, sellers and tenants need to double check any email purporting to be from their real estate agent, conveyancer or settlement agent requesting funds be sent to a bank account – again; if you are unsure call your agent or go to their office and ask. Better safe than sorry! No one in this current climate will blame you for not only double but triple checking anything.

Email servers can be hacked so we recommend that any change is confirmed with a phone call to the previously known number to verify if the request is authentic.

Don’t throw any paperwork away without first removing or obscuring any personal or account details – shred if you can or use a confidential document company to destroy your paperwork.

Don’t let anyone know your passwords or bank details and if you should suspect for any reason that anyone has these then take steps to change them immediately.

Cyber Security

For the property industry, it is important that both clients and conveyancers use the highest possible security software to protect the integrity of their computer systems and email servers.

It is believed hacking may have occurred as a result of accessing email accounts via public Wi-Fi and consumers and industry professionals are cautioned about the dangers of using emails on open networks such as these when arranging important transactions.

Regular changing of passwords for email and bank accounts and independent verification of requests for changes to bank or contact details should be normal practice.

Property transactions are always going to be a lucrative target for scammers due to the amount of funds being transferred so we all need to exercise extreme vigilance.

Reporting Scams

At McKay Business Services we have tested systems in place to guard against scams such as this to protect both us and our clients. We always follow up with a telephone call when requesting any funds from our clients to confirm the details, our emails have information informing you that that we do not request funds or ask for your bank details by email or message. Someone will always be available to discuss any correspondence you have received or any issues that may concern you.   Make sure your conveyancer uses good practices when dealing with your funds and does not dismiss you – everyone needs to take this seriously and we all need to work together to stop these incidents.

Read more as to how to find the best conveyancer for your sale or purchase:      https://www.mckaybusiness.com.au/business/a-few-quick-tips-for-you-to-find-the-best-conveyancer/

Confirmed or suspected Cyber-attacks and scam losses should be reported to Consumer and Business Services by calling 131 882, Police 131 444, Crime Stoppers 1800 333 000 or National Security Hotline 1800 123 400 and if you feel unsafe at any time call 000.

The team at McKay Business Services are all members of the AICSA and are proud Adelaide conveyancers