Australians have been warned to be vigilant after a rise in AI-powered property scams, with research showing 97 per cent of recent or soon-to-be buyers failed to spot warning signs in property transaction emails.
The recent scams often involve hackers posing as solicitors or real estate agents and giving new bank account details for deposits or other upfront costs.
The ACCC reported losses jumped from $13 million in 2021 to $43.2 million in 2024.
Recent victims have lost hundreds of thousands of dollars, including a Sydney couple who lost $970,000 and a buyer in Western Australia who lost $732,000.
The scams are growing more sophisticated thanks to AI, which can clone voices and create convincing, personalised messages.
“Unfortunately, we live in a world where advances in AI generated video and audio make it possible for criminals to impersonate celebrities, your friends, family members or even your bank,” Australian Banking Association CEO Simon Birmingham said.
“From fake investment ads by celebrities to voice clones asking for help, AI scams are becoming more targeted, sophisticated and emotionally manipulative.”
Another recent case involved a retiree who received an email that appeared to be from her conveyancer requesting her $800,000 settlement payment two weeks early. The account details had been changed, but fortunately the fraud was caught before any money was sent.
PEXA chief information security officer Graham Fairley said, “Property transactions involve large sums, short time frames and routine reliance on email – the exact conditions that cybercriminals exploit.”
Scam emails often demand urgent payments with revised bank details and threaten forfeiture unless deadlines are met. Buyers, who are often busy and stressed, can easily overlook these changes.
“These scams 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,” Fairley added.
Peter Maddison, PEXA Scam Awareness Ambassador, urged buyers to double-check any urgent or unexpected payment instructions and verify bank details.
“AI scams sound real, look real, and feel real. That’s what makes them so dangerous. Banks will continue to fight back by using AI to detect and shut down scams so as to protect people’s money, however customer vigilance is still the best form of defence,” the Australian Banking Association CEO said.
Red flags include last-minute changes to bank details, urgent payment demands, altered email addresses, and unverified requests.
Image: Adobe Stock
