Preparing financially

Property and settlement scams to know before buying

The 'man in the middle' email scam that redirects settlement funds to a fraudster, the one phone call that defeats it, and other scams to watch for.

The "man in the middle" settlement scam

The most financially damaging scam buyers face is a "man in the middle" email scam: a scammer intercepts or impersonates email correspondence between a buyer and their conveyancer, solicitor or agent, then sends a message — often close to settlement — with new, fraudulent bank account details for transferring settlement funds. If the buyer doesn't independently verify the new details before transferring, the money goes to the scammer, who typically moves it overseas quickly, making recovery very difficult. This category of scam — known as payment redirection — cost Australians $166.8 million in 2025 according to the ACCC (Australian Competition and Consumer Commission, verified 22 Oct 2026), and property settlements are a favoured target precisely because the sums involved are so large. The warning signs for each professional you pay are in red flags and scams when hiring property professionals.

The single most effective protection

Before transferring any significant sum — especially settlement funds — call your conveyancer or solicitor on a phone number you already have or independently look up yourself (never a number provided in the email containing the new account details), and verbally confirm the account details before sending money. This single step defeats the vast majority of these scams, because the scammer controls the email thread but not an independently sourced phone call.

Other scams to watch for

Upfront-fee loan scams (a "guaranteed" pre-approval or loan requiring a fee paid before any formal application); fake listings for properties not actually for sale, requesting a deposit before an inspection; and phishing emails or texts impersonating a real lender, government agency or Moneysmart itself, asking you to click a link and enter personal or banking details.

If you suspect you've been scammed

Stop sending money immediately, contact your bank or financial institution straight away (some transfers can potentially be stopped or recalled if reported quickly), and report the incident to Scamwatch, the government-run service that tracks and warns about fraud.

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Practical checklist

Protecting your settlement funds

• Save your conveyancer's and lender's phone numbers directly, from their official website, before settlement approaches
• Never transfer settlement funds based on account details received only by email
• Call to independently verify any change in bank account details before transferring money
• Be wary of any loan or property offer that asks for an upfront fee before formal application

Questions for a professional

• What is your firm's process for confirming settlement account details, and how can I independently verify them?

Official resources

• Scamwatch: business email compromise scams
• Moneysmart: how to avoid scams

Sources and methodology

• Continued action critical to combat fraud as annual scam losses exceed $2 billion | ACCC — Australian Competition and Consumer Commission (retrieved 22 Oct 2026). Reuse terms: see the publisher's site
• Targeting scams report | Scamwatch — National Anti-Scam Centre (ACCC) (retrieved 22 Oct 2026). Reuse terms: see the publisher's site

Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.