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Home buyer ‘almost’ scammed $1.2m
A Westpac home buyer nearly lost over $1 million after a fake conveyancer email asked him to transfer his settlement money. His banker’s gut feeling saved him.
Peter Smith* had been waiting to hear from his conveyancer to secure his new property and wasn’t surprised when he received an email asking him to transfer $1.2 million into their bank account, which he did promptly.
Yet, the home buyer didn’t think to verify the bank details in the email when he sent the money; that mistake could have cost him his new property.
Thankfully, his banker, Westpac private wealth banker Diane Zhou, had a gut feeling and called Peter’s conveyancer herself to double-check the transaction.
“When I spoke with the conveyancer, I was shocked to learn that she had never sent the client an email with payment instructions, and the bank account details provided in the email were not hers,” Zhou says.
“I was then even more shocked that she was aware several fraudulent emails had been circulating, impersonating her office – indicating her emails were compromised.”
Like millions of Australians, Peter had been a victim of a scam.
From 1 January to November 2024, ScamWatch reported 198,126 scams that cost Australians over $224 million.
In October alone, the watchdog reported 3,420 cases of ATO impersonation scams, a 5 per cent increase from August 2024.
Westpac’s head of fraud prevention, Ben Young, said payment redirection scams or business email compromise are the most complex scams to spot.
He said these cons occur when scammers intercept a business’s emails and replace the BSB and account number on invoices with their own, with victims losing millions in a single transaction.
“There might be nothing in the email or invoice to alert you that this is a scam, and it’s usually a bill that you expected to pay,” Young said.
Data analysis from Westpac showed that in 2023, payment redirection scams were the fifth most common type of scam, yet they recorded the second-highest loss, with victims losing on average $27,500.
In 2022, these types of scams saw Australians lose $224 million.
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“Businesses and individuals are equally at risk of falling victim to payment redirection scams – it really can happen to anyone,” Young said.
To counteract scammers, Young said home buyers should thoroughly verify the amount, BSB and account number, even if the email address is from a familiar solicitor or conveyancer.
“However, you can never be too careful,” Young said.
“Our advice is to always verify any banking information verbally over the phone when you receive requests for new, urgent or redirected payments, and ensure you verify through a phone number you have sourced yourself.”
“You can also request to pay your suppliers using a PayID. PayIDs display the registered payee name, so if it’s not your intended recipient, you will know,” Young concluded.
*The buyer’s name has been changed for privacy reasons.
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