Property Deposit Scams: 3 Essential Checks Before You Pay
Conveyancing | South Australia
How can you reduce the risk of property deposit scams? Before transferring a deposit or settlement funds, independently call the business you intend to pay and confirm the complete BSB and account number. Use a phone number obtained separately from the payment email. Repeat the check whenever payment details change.
Buying a home involves contracts, finance and deadlines. A payment request arriving at the expected time can feel like another item to tick off. That is precisely why a convincing email deserves a careful check before money leaves your account.
This guide expands on my short PA Law video using a simple routine: Pause. Call. Confirm. It is relevant to buyers and sellers in Gawler, Adelaide and across South Australia.
Already paid and suspect a scam? Contact your bank immediately and ask it to try to stop or recover the payment. Then alert your solicitor or conveyancer. Do not wait until settlement or until you have completed an online report.
What are property deposit scams?
Property deposit scams are payment redirection scams connected with a property transaction. A criminal supplies fraudulent bank details while pretending to be someone involved in the sale, such as an agent, solicitor or conveyancer.
The request may use a copied signature or an address that looks almost identical to the real one. It may also come through a compromised genuine email account. A familiar sender name, accurate property address or existing email conversation does not establish that the payment instructions are authentic.
Scamwatch explains business email compromise, including how an apparently genuine payment request can redirect a home deposit. ASD’s Australian Cyber Security Centre also warns that property buyers, sellers and the businesses assisting them can be targeted.
Property deposit scams: 3 checks before transferring money
1. Pause and check what you are being asked to pay
Before opening your banking app, identify the payment’s purpose, amount and intended recipient. Does the request fit the arrangements you have already discussed? Has anything changed?
Warning signs include an unexpected account change, pressure to transfer immediately, instructions to skip your usual checks or a slightly different email address. Official business email compromise guidance recommends a consistent process for verifying payments instead of relying on how convincing a message appears.
A real contractual deadline may still require urgent attention. If something seems wrong, telephone your representative promptly to resolve it. Do not assume that either paying immediately or ignoring the request will protect your position.
2. Call using a number you have verified independently
Call the intended recipient on an established number you already trust, or obtain its number independently from its official website. Do not rely on a telephone number or website link supplied only in the payment request.
For example, a message saying “our bank details have changed; call this new number to confirm” does not provide an independent check. The number could lead to the same person who supplied the false account details. If you cannot reach the appropriate person, ask your solicitor or conveyancer how to resolve the uncertainty before transferring.
You can start the conversation with:
“I have received payment instructions for my property transaction. Before I transfer, I need to check the purpose and amount, the account name, the BSB and the full account number with you.”
3. Confirm the complete payment details
Read out the full BSB and account number and have the intended recipient confirm them. Also clarify the account name, amount and payment reference so the transaction can be identified.
Check the details entered in your banking app against what you have independently verified. Keep a note of when you called and who confirmed the instructions. If a later message changes the account, start the verification process again.
Replying “are these details correct?” to the original email is not an independent check. If the account is compromised, the reply could also come from the scammer.
Why a professional-looking attachment is not enough
A payment instruction on letterhead can still contain substituted bank details. In a case reported by Western Australian Consumer Protection in 2022, a home buyer lost about $732,000 after receiving authentic-looking documents with fraudulent payment instructions. The agency’s account illustrates the danger of trusting appearance alone; it does not establish who would be legally responsible in a different transaction.
The practical lesson is to verify the payment destination separately, even when the paperwork looks familiar.
What should you do if you have already paid a scammer?
- Contact your bank immediately. Explain that the transfer may be fraudulent and ask whether it can be stopped, traced or recovered. Follow the bank’s instructions.
- Tell your solicitor or conveyancer. Explain the payment amount, timing and any approaching deadline so the effect on your transaction can be assessed.
- Preserve the evidence. Keep the original emails, attachments, payment receipt and a timeline of calls and messages. Do not delete material that may help explain what happened.
- Report the incident. Use Scamwatch and, for cybercrime, the appropriate ReportCyber reporting pathway. A report does not replace contacting your bank.
- Secure affected accounts. If you suspect your email was compromised, seek technical assistance and follow official guidance on account recovery, passwords and multi-factor authentication.
Recovery is not assured. Nor should you assume that a loss automatically cancels your payment obligations or that another party must reimburse you. Those questions require advice about the actual contract, communications and circumstances.
A practical checklist for your next property payment
- I know why the payment is due and who should receive it.
- I have called a separately verified number.
- I have confirmed the complete BSB and account number.
- I have checked the amount and reference before authorising the transfer.
- I have recorded the verification and will retain the payment receipt.
- I will verify again if the instructions change.
Frequently asked questions about property deposit scams
Can a scam appear in a genuine email conversation?
Yes. A compromised email account can allow fraudulent instructions to appear in a genuine thread. Previous legitimate messages do not authenticate a new payment request.
Should I verify the first payment as well as changed details?
Yes. Do not wait for a change to trigger the check. Verify the intended account before the first transfer, and repeat the check if new instructions arrive.
Is a small test payment enough?
No. A test payment does not, by itself, establish who controls the receiving account. Independently confirm the recipient’s details before sending money.
Does using PEXA remove the need to verify bank details?
No. Electronic settlement does not make every emailed instruction genuine. The ACSC explains that fraudulent recipient details can be supplied to a settlement practitioner even where the settlement platform itself remains secure.
Are sellers also at risk of property settlement scams?
Yes. Criminals may impersonate a seller and request that sale proceeds go to a different account. Agree with your representative how your instructions will be verified, particularly if they change.
Who should I call first if money has gone to the wrong account?
Call your bank immediately, then notify your solicitor or conveyancer. Prompt action may help attempts to stop or recover the transfer, but recovery cannot be promised.
Watch the PA Law video
Watch “Property Deposit Scams: 3 Checks Before You Transfer” on YouTube, or read the transcript on our property deposit scam video guide.
Buying or selling property in South Australia?
PA Law assists with contract review, conveyancing and settlement preparation for clients in Gawler, Adelaide and across South Australia. Tell us the property location, whether you have signed a contract and any approaching deadline.
Explore our conveyancing services or request an appointment.
Call 0431 614 696.
About the author
Manal Amro is the Principal Solicitor of PA Law Pty Ltd, based in Evanston South. She assists clients with property, estate and commercial legal matters.
Sources and further reading
- Scamwatch: Business email compromise scams.
- ASD’s ACSC: Property-related business email compromise scams.
- ASD’s ACSC: Protecting against business email compromise.
- WA Consumer Protection: Property settlement payment scam results in a $732,000 loss (2022 case; page updated 2024).
- Scamwatch: Report a scam and ASD’s ACSC: Submit a report.
General information only. This article is not legal, financial or cybersecurity advice for your circumstances. Obtain advice about your transaction and documents before acting. Sending an enquiry does not by itself engage PA Law to act.