Homeowners and aspiring buyers are facing a new, sophisticated threat: AI-powered settlement scams that are fooling nearly everyone. New research has highlighted a dramatic rise in these cons, which could put your life savings at risk.

A Staggering Failure Rate

According to a startling report from exchange platform PEXA, a whopping 97% of Australians who recently bought property, or plan to soon, could not identify the dangerous markers of a transaction scam in emails. These scams, often called "settlement scams" or "payment redirection scams," involve criminals hijacking email accounts to impersonate real estate agents, lawyers, or conveyancers.

The scammer waits for the perfect moment—usually right before the final property settlement—and sends a fraudulent email with updated bank details for the deposit or final payment. With the pressure and excitement of sealing the deal, many people fail to notice the subtle changes.

Financial Devastation on the Rise

The financial consequences are devastating. Data from the ACCC (Australian Competition and Consumer Commission) reveals that losses from property scams have exploded, rising from $13 million in 2021 to an incredible $43.2 million in 2024. This highlights how effective and lucrative these scams have become for criminals.

How to Protect Yourself from Property Scams

Given the sophistication of these AI-powered attacks, vigilance is key. Here's what you can do:

• Verbally Confirm All Bank Details: Before transferring any money, always call your real estate agent or solicitor using a phone number you have from a trusted source (not one from the email itself). Verbally confirm the account number and BSB.
• Be Wary of Last-Minute Changes: Any email that claims bank details have suddenly changed should be treated as a major red flag. This is a classic scammer tactic.
• Use a Scam Checker: If you receive a suspicious email, paste the content into ScamSpotter. Our AI can help identify suspicious language, links, and patterns common in phishing and redirection scams.