PHOTO: Aussies have reported 28,617 false billing scams from January to September 2023, resulting in about $23million lost – a 95 per cent increase compared to the same period last year
A New South Wales (NSW) couple has fallen victim to a sophisticated scam, losing nearly $275,000 after receiving an email instructing them to settle the amount for their first home purchase.
Simon Elvins and his wife dedicated a decade to saving for their inaugural home, and their excitement was palpable when they successfully secured a property in the Blue Mountains, NSW.
Their unfortunate ordeal began when Mr. Elvins received an email that appeared to be from his trusted conveyancer. The email provided an extensive breakdown of their home purchase, with all the correct details pertaining to the new property. It also requested a substantial sum of $274,311.57 to facilitate the impending settlement.
Aussie mum reveals shocking property scam that left her in tears
Adding to the deception’s authenticity, the email included trust account particulars for the payment, encompassing the BSB and an account name that perfectly matched the conveyancer company Mr. Elvins had engaged.
Mr. Elvins sent two transactions as the amount was too substantial for a single transfer and awaited a response from his conveyancer. However, as days passed without any communication, he reached out to both his conveyancer and real estate agent. Shockingly, they informed him that they had not received the settlement payment and provided him with the correct account details.
Woman loses $732,000 to property scam after responding to fake email
Mr. Elvins explained, “It all looked fine. So I paid it in two amounts, because the amount was too large to do in one go.” He then realized that the account details in the second transfer didn’t match the initial ones. It became evident that they had fallen victim to a scam.
Upon realizing they had been scammed, Mr. Elvins immediately contacted Westpac, who in turn reached out to NAB, the bank associated with the scammers’ account. Unfortunately, a week had passed since the second transfer, and almost all of their money had vanished, with only $270.72 being recovered.
Mr. Elvins suspects that the scammers gained access to the conveyancer’s email to craft the fraudulent invoice. Invoice scams have been on the rise in Australia, targeting significant transactions such as property purchases and renovations. Australians reported losses of approximately $23 million between January and September of that year, with a 95 percent increase in false billing scams compared to the previous year.
Consumer advocates are urging banks to implement a ‘confirmation of payee’ policy to thwart hackers from generating fake invoices. Currently, under the Bulk Electronic Clearing System (BECS) in Australia, money is transferred irrespective of whether the correct account name matches the account number, despite customers being required to input both details.
Some banks have started introducing their systems to combat invoice scams. Commonwealth Bank, for instance, launched NameCheck, a policy that highlights disparities between account details and names.
While Westpac did not comment on the Elvins’ case, they claimed to detect 60 percent of scams. They also stated that reimbursement for unrecoverable funds is considered on a case-by-case basis, taking various factors into account.
Mr. Elvin and his wife ultimately managed to complete the purchase of their house but had to obtain lender’s mortgage insurance and increase their mortgage, resulting in an extra $2,000 in monthly repayments.
To protect against scams, individuals are advised to verify that the recipient’s bank details match before making any payments. Using the PayID transfer system is also recommended, as it discloses the bank account holder’s name.
ScamWatch advises those who believe they have been scammed to contact their bank, report the scam to the ACCC, and notify the relevant website regarding the scammer’s profile name and details.
SOURCE: THE DAILY MAIL