Most Australians miss scam signs in property settlement emails

Almost all Australians involved in property transactions over the past year, or planning to buy in the next year, have failed to recognise signs of email scams during the settlement process, according to new research from PEXA.

PEXA's recent survey found that 97% of respondents missed obvious indicators of fraudulent activity within property transaction emails, despite most reporting high confidence in detecting scams. The survey addressed 1,030 participants, including those who purchased a property in the last year and those intending to buy within the next 12 months.

This research was released alongside PEXA's latest White Paper, Safeguarding your Property Settlement: Awareness and Prevention of Scams, authored by Graham Fairley, Chief Information Security Officer at PEXA. The paper highlights the increasing threat of property settlement scams in Australia, identifying them as among the most financially damaging forms of cyber-crime currently affecting home buyers and sellers.

Settlement scams highlighted

Graham Fairley explained how property settlements can become an easy target for scammers, who exploit the inherent conditions of these transactions. "Property transactions involve large sums, short time frames and routine reliance on email – the exact conditions that cybercriminals exploit," said Mr Fairley.

"Criminals know they don't need to compromise systems – they just need to compromise trust. And these scams, typically executed via business email compromise, are using increasingly sophisticated measures to trick victims into sending large sums to the wrong bank by impersonating trusted parties in a transaction such as real estate agents, lawyers, or conveyancers."

According to Mr Fairley, scam tactics may range from slight alterations in email addresses and punctuation to urgent payment requests with updated bank account details and threats of forfeiting the purchase if deadlines are not met. Buyers, under significant stress and focused on concluding their transactions, may not notice these subtle signals.

He also highlighted the difficulties faced by victims in recovering funds lost to such scams, which differ significantly from typical credit card fraud. "Unlike a fraudulent credit card transaction, money lost to scammers in a property transaction can be much more difficult to recoup," Mr Fairley added.

To address these threats, the White Paper recommends increased vigilance and the greater use of secure digital tools to significantly reduce risks. It encourages buyers and sellers to carefully verify any correspondence regarding settlements, particularly messages related to financial transfers.

Industry voices

PEXA's Scam Awareness Ambassador, architect and television presenter Peter Maddison, expressed concern about the findings and encouraged the community to heed expert guidance on secure property settlement practices.

"As someone who's spent decades in property and architecture, I find these results deeply concerning. Property transactions are often the biggest financial decisions in people's lives. When scammers strike during these critical moments, the consequences can be devastating. I'm partnering with PEXA to help Australians understand how they can protect their property dreams from these sophisticated scams."

Mr Maddison recommends that all parties use secure channels for communication, double-check any payment instructions they receive, especially if unsolicited or marked as urgent, and always verify payment details independently.

Red flags and guidance

PEXA's research and the accompanying White Paper outlined several warning signs, including last-minute changes to bank details, urgent requests for payments, slight alterations to email addresses, unexpected requests from unknown parties, and confirmation of payee warnings from banking institutions. The report urges everyone involved in property transactions to follow best practice guidelines, such as:

• Always use secure communication platforms for exchanging sensitive information
• Never trust unsolicited email instructions relating to payments
• Pay attention to Confirmation of Payee (CoP) warnings and never dismiss such alerts
• Double-check sender email addresses and be vigilant for any inconsistencies

The White Paper notes that tools like PEXA Key can provide an additional layer of security by protecting bank account information during settlements.

Scams remain a significant risk

The PEXA survey and accompanying guidance emphasise that property buyers, sellers, and all professionals in the property transaction process must remain alert to the escalating risks associated with settlement scams. The combination of complex transactions, large sums of money, and frequent reliance on electronic communication creates conditions that cybercriminals continue to exploit.

PEXA's research is based on a national survey conducted by the firm Nature in July 2025, which covered the experiences and intentions of over 1,000 Australians engaged in property purchasing.