Times are tough in the Australian property market. House prices are down, and may keep falling in key areas. Inflation and soaring energy costs aren’t helping buyers either. The cost of living is through the roof. Money is tight and even a fraction of a percentage point added to interest rates will exacerbate the financial pain. As a property buyer or seller, you run this very risk. Cybercriminals are not perturbed by a slowing market, and they’re busier than ever. They are focusing on the real estate sector, specifically on transactions between buyers and sellers. Agencies are becoming more aware of the risks they face and how to mitigate them. As a buyer or seller, you should be fully aware of the dangers you face when you’re on the internet.

Cybercriminals Using BEC Scams

If you’re buying or selling in the property market, you need to be aware of the business email compromise scam. A BEC involves the compromise of company and customer data to make payments to fraudulent accounts. It can happen innocently. In a recent scam, a Brisbane couple was defrauded of $50,000. In this hustle, an email was sent to the elderly couple’s real estate agent. The message appeared to come from the husband and instructed the agent to pay $52,727 to a trust account. The agent obliged, but the money went instead to an account held by cybercriminals. The gentleman in question never used email and didn’t have an email account. They only learned about the swindle when their daughter later informed them they had money missing. Somehow, the cybercriminals managed to intercept key details about the property settlement. They were then able to perfectly time their request for money.

However, not even the tech-savvy are safe. A couple in Western Australia was targeted in an email scam. Both are young engineers, but that didn’t stop them from getting bilked through a simple BEC con. The couple was preparing to buy a property and weren’t surprised to receive an email from the agent. It told them that their main account was undergoing a bank audit. Instead, they requested that $25,000 be paid to a subsidiary account. The email appeared to be authentic and they did as requested. However, yet again, another Australian couple fell prey to cybercriminals. The criminals redirected their funds to a dodgy account. They never saw their money again. In the case of the Brisbane couple, the authorities helped them to retrieve the stolen money. The Western Australian couple weren’t so lucky. They are ashamed that they were so easily stung. And yet it’s quite common now.

A Rise In Cybercriminals Scamming Real Estate

Instances of scams in the real estate sector are on the rise nationally. The Australian Competition and Consumer Commission’s (ACCC) Scamwatch receives an average of two BEC scams a week involving real estate. The highest figures in 15 months occurred in March 2022, with 14 reports. A staggering $4.3 million was scammed around the country from January 2021 to March 2022. That’s a lot of welcome mats never laid out. However, it’s not only the humble buyers who’re getting fleeced: cybercriminals are targeting conveyancers too. According to the chief executive officer of the NSW division of the Australian Institute of Conveyancers (ACINSW), they targeted a member. A conveyancer who was intending to transfer stamp duty to the state revenue service was intercepted by a fraudster. The money never reached the government’s coffers. Instead, like the other money, it went into a fake account and was never recovered.

The biggest BEC scam so far has involved a misdirected $750,000 transaction. That’s enough to make your eyes water. But what happens to the money? Why is it so hard to trace, and why are cybercriminals targeting the property market? The boom in property prices over recent years is to blame. Such a virulent market was ripe for plundering by those who prize the proceeds of crime over honest endeavour. BEC is starting to supplant other types of cyber fraud. Up to now, cybercriminals have preferred scams involving ransomware. While that’s still a lucrative heist for these anonymous hackers, BEC has ballooned in popularity. It has to do with the number of parties engaged in real estate activities and the scarcity of security involved. When the money hits the criminal’s account, it is laundered through a cryptocurrency exchange and changed into bitcoin. The criminals operate out of reach of authorities.

Who Are The Cybercriminals?

The FBI has tracked the major cybercriminals to eastern Europe, the USA, and Nigeria. Russian hackers tend to favour ransomware, while BEC scams are the national favourite in Nigeria. An organisation in Nigeria is behind much of the BEC attacks. The Nigerian syndicate “Black Axe” is one of the worst. They specialise in human trafficking, prostitution, narcotics, and money laundering. Cyber fraud is just the icing on a lucrative criminal cake. They attract their “talent” from among Nigeria’s university undergraduates. These earn the name “Yahoo Boys,” deriving their name from the Internet giant and referencing their brand of crime. In the Lagos region alone, there are reportedly five million online scammers currently operating. They graduate through the various tiers of scamming, from the “Nigerian Prince” to the BEC scammers. They are indefatigable and ruthless.

What Are Some Of The BEC Cybercrimes?

Many scams operate under the BEC umbrella. The Australian Government’s Cyber Security Centre has highlighted some of these. Invoice fraud involves compromising a vendor’s email account and gaining access to legitimate invoices. Once the criminal has access, they doctor the invoices with fake details and forward them to the victim. The victim believes they are paying the vendor’s account but are funding the Nigerian criminal syndicate. This is just one of the scams. The victim isn’t always a customer; there is also employee impersonation. By gaining entry into a company’s email system, they can change workers’ details. By doing so, they scam the company by rerouting an employee’s wages to a fake bank account. The boldest of these crimes is the impersonation of an organisation. Scammers create a mirror site of a trusted organisation and its domain.

Protect Yourself Against Scammers

It’s easy to advise people to protect themselves against scammers but how to do so? The Australian Government recommends taking cautious steps while doing business online. For instance, phishing scams aim to steal information and credentials by misrepresenting organisations. These invariably bear telltale signs of their fraudulent composition, such as bad spelling, or imitative names. But criminals don’t confine themselves to email and you can be targeted by SMS, and instant messaging. Social media is rife with such scam artists you must beware. They too may appear to be coming from a government organisation, a bank, or a utility vendor. Never give your details to any of these. If you are doing legitimate business with a genuine organisation you know they will never ask you for these. You must also be aware of any attachments sent to you. These may contain malware.

If you do receive an email like those we’ve described in the BEC scam, phone your agent to confirm. Make sure that the email is genuine and send no money until you have established that any such request is legitimate. Unexpected bank account changes, as well as any unusual request, should raise a red flag. You must let your agent know from the outset that you won’t transfer money to any account unless requested personally. Any emails involving the transfer of money should be likewise confirmed before they proceed. Take the opportunity to double-check all the bank details and the names of the recipients. It’s much better to come across as overcautious than to lose the proceeds of your investment to a Nigerian gang. Take full advantage of all online security precautions, such as multi-factor authentication. Educate yourself as to the types of scams around by investigating the government website.

Conclusion

The internet has changed our lives. It has taken the chore of many of the everyday tasks that once upon a time ate up our time. We can now do things at our fingertips that hitherto required us to travel and stand in lines. But like all things benefits come with drawbacks. Sadly, the internet has put us at the mercy of the criminal element. As much as it has improved our lives, it has made crime easier for them. But with enough commonsense, we can foil these parasites before they have a chance to cheat us. It is as simple as paying attention to everything that comes our way online. When you’re selling your property you need to be careful who you trust. A qualified real estate agent knows this. If you’re looking to sell your house Perfect Agent can help you find the agent you need! Contact us!