PEXA flags drop in scam confidence among homebuyers

PEXA has published research showing a drop in Australians' confidence in spotting property settlement scams, alongside the launch of a new online security hub.

The survey found 41% of respondents felt confident in their ability to detect a property scam, down from 51% a year earlier. At the same time, 92% said they were aware of at least one type of property scam, suggesting broad awareness has not translated into an ability to identify suspicious activity in practice.

One of the sharpest findings came from a simulated email test. The research found 42% of respondents could not identify any scam warning signs in the message, while 99% failed to spot the fraudulent email address even after being told the email was a scam.

The study was based on responses from 1,028 Australians, including 500 people who had bought a property in the past year and 528 who intended to buy within the next 12 months. Nature conducted the research nationally.

Stress levels

The report also pointed to the broader pressure surrounding property transactions. Some 87% of those surveyed said buying or selling property ranked among the most stressful experiences in life, above moving cities or countries and divorce.

That stress matters because scammers often target buyers and sellers when they are under time pressure and handling large payments. Property settlement scams typically involve false or altered payment instructions sent by email or other communications that appear to come from trusted parties in the transaction, such as agents, lawyers or conveyancers.

Concern is also growing around voice-based fraud. The research found 62% of respondents were worried about AI-based voice cloning in property scams, reflecting concern that fraud attempts are moving beyond email into phone-based impersonation.

Graham Fairley, Group CISO at PEXA, said the results reflected the scale of the threat facing homebuyers.

"These results are concerning, but not surprising. As scammers get more sophisticated, they are becoming harder for average Aussies to detect, especially during one of the most stressful times in their lives," Fairley said.

He said the financial stakes in property deals make the sector particularly exposed when fraud occurs.

"Property transactions are often the biggest financial decisions in people's lives. When scammers strike during these stressful yet critical moments, the consequences are significant," Fairley said.

How scams work

The most common risk remains business email compromise, in which criminals impersonate a legitimate participant in a transaction and try to redirect funds. In practice, this can mean a buyer receives new bank details that appear genuine and transfers money to an account controlled by a fraudster.

Fairley described that pattern as an attack on trust rather than on systems.

"In property settlement scams, cyber criminals compromise trust, not systems. They use highly convincing communications and urgent demands to trick victims into sending money to the wrong bank by impersonating trusted parties involved in the transaction, such as real estate agents, lawyers or conveyancers," Fairley said.

He also pointed to voice cloning as an emerging concern in the settlement process.

"While business email compromise remains the biggest threat, an emerging concern during property settlements is the use of AI-enabled voice cloning. The email or voice on the phone may sound familiar, but that doesn't mean it is genuine," Fairley said.

Prevention steps

The new PEXA security hub is intended as an educational resource for consumers navigating settlements. It offers guidance on recognising warning signs, improving cyber hygiene and verifying payment instructions before funds are transferred.

The survey suggests many Australians already see verification as a key defence. About 84% of respondents said they would check any new payment instructions with a real, known person, either face to face or over the phone, to reduce the risk of fraud.

Fairley said consumers should pause when details change unexpectedly and avoid responding under pressure.

"Awareness is the first step towards safeguarding the property journey. Today, consumers can use secure settlement tools such as PEXA Key to safely exchange bank account details and rest assured those details won't be compromised," Fairley said.

"Most importantly, follow government advice to 'Stop. Check. Protect.' Australians must pause if they receive unexpected changes in payment instructions instead of acting under pressure. Verify the request independently, either in person or by calling the property professional on a known number. Consumers should also take Confirmation of Payee warnings from their bank seriously and contact their bank immediately if they believe they have been the victim of a scam," Fairley said.