Payment redirection scams: Steps home buyers can take to help protect themselves

Estimated reading time
 6 min

Key points

• Home buyers are prime targets for payment redirection scams
  
  
• Always verify bank details using a trusted phone number
  
  
• Report scams immediately

Whether you're buying your first home, investing in property, or applying for any type of home loan (including construction, bridging and investor loans), you're likely dealing with large financial transactions and with multiple parties.

We’re talking real estate agents, builders, tradies, building inspectors, pest inspectors, conveyancers, mortgage brokers and banks. Unfortunately, this makes you a prime target for a growing cyber threat: payment redirection scams, also known as business email compromise (BEC).

What is a payment redirection scam?

A payment redirection scam happens when a cybercriminal impersonates a trusted party (such as your builder, solicitor or lender) and tricks you into transferring money to a fraudulent bank account. These scams often involve:

• Fake or compromised email accounts
  
  
• Invoices with altered bank details
  
  
• Urgent or authoritative messages pressuring quick action

Alarmingly, scammers are getting more sophisticated at using AI-generated emails and spoofed domains/copycat websites that closely resemble legitimate ones.

Why home buyers are at risk

In 2024, almost $84 million in losses due to BEC were self-reported to ReportCyber according to the Australian Cyber Security Centre (ACSC). Home buyers and their cohort are especially vulnerable because:

• Property transactions involve large sums of money
  
  
• Communication often happens via email
  
  
• There’s a high level of trust in professionals like conveyancers and builders
  
  
• Time-sensitive transactions (such as settlement deadlines) create urgency

Scam scenarios

Scenario 1: First home buyer

Brahm, a first-time buyer in Melbourne, received an email from his conveyancer with updated bank details for his deposit. The email looked legitimate – same branding, tone and even signature. He transferred $75,000, only to discover days later that the email was fake. The funds were unrecoverable.

Scenario 2: Construction

Satya was midway through building her new home when she received an email from her builder requesting the next progress payment. The email included updated bank details and referenced the correct stage of construction. Trusting the message, she transferred $45,000. Days later, her builder called to ask why the payment hadn’t arrived. The email had been sent from a compromised account.

Scenario 3: Settlement

David and Leng were finalising the sale of their old home while settling on a new property. They received an urgent email from their conveyancer just before the weekend, asking them to transfer the bridging loan funds to a new account due to “banking issues.” They acted quickly…only to find out on Monday that the email was fraudulent and the funds were gone.

Watch out for these red flags

• Last-minute changes to bank details
  
  
• Emails urging you to act “ASAP” or “before COB”
  
  
• Slightly altered email addresses (e.g. @conveyancer.com.au vs @conveyancor.com.au)
  
  
• Poor grammar or formatting
  
  
• Requests for secrecy or bypassing normal procedures

Ways to help stay safe

Whether you're applying for a mortgage, construction loan, or bridging finance, consider these steps:

• Verify payment details by calling your contact using a known phone number, not the one in the email
  
  
• Use PayID where possible to confirm the recipient’s name
  
  
• For large payments, send a small test amount first and confirm receipt
  
  
• Be cautious of emails sent outside business hours or with unusual formatting
  
  
• Use secure portals for document and payment exchanges
  

What to do if you think you’ve been scammed

• Contact your bank immediately to attempt a reversal. If you’re an ANZ customer, here are our contact details
  
  
• Report the scam to the ACSC and to Scamwatch
  
  
• Notify your conveyancer, lender and/or builder
  
  
• File a complaint with Australian Financial Complaints Authority (AFCA) if applicable
  
  
• Consider contacting IDCARE for support

Helpful tools

• Multi-factor authentication (MFA) on email accounts
  
  
• Secure file-sharing platforms for contracts and invoices
  
  
• AI-powered email filters to detect spoofed messages
  
  
• Security awareness training for all parties involved

Conclusion

As scammers hone their tactics, our awareness and vigilance must evolve too. Staying informed may be one of the most effective ways to support your safety. Simple actions, such as verifying bank details, using secure communication channels, and pausing when something feels off, can help protect your money and peace of mind. In a high-stakes process like property ownership, caution is not just wise - it may be necessary at every point in the journey.