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Retired Bookkeeper Becomes Victim of Fraud, Losing $26,000 in Sydney Property Scam
Lily, a retired bookkeeper with a long career helping businesses manage their finances, was shocked to find herself the victim of a sophisticated scam. In June, she lost approximately $26,000 when she sold her two-bedroom apartment in southern Sydney.
Although she received most of the proceeds from the sale, the real estate agent mistakenly transferred the deposit paid by the purchaser to a scammer. This error had devastating consequences for Lily, who relies on her savings to support herself as a retired disability pensioner in Australia.
Lily, who chose not to disclose her surname, explained her situation: “I worked so hard for 25 years until my vision got so bad that I couldn’t work, so I had to retire early. Now I’m trying to save for the future, but the money is gone.”
Lily suffers from a degenerative eye condition that renders her legally blind, relying on NDIS support workers for daily activities. Despite her efforts to recover the lost funds from her agent, the agency maintains that they are not at fault.
The Scam Unfolds
Lily and her agent, HT Wills Real Estate, were targeted by a payment redirection scam, also known as a “man-in-the-middle” scam. Scammers intercepted email communications between Lily and her agent, redirecting the deposit to their account.
On June 13, HT Wills requested Lily’s bank account details. Lily responded with her ING account information. Six minutes later, the scammer sent an identical email to the agent from Lily’s email account but provided details for an ANZ account. When the agent sent a follow-up email on June 17 to confirm the correct account, the scammer again intervened, providing details for an ING account that did not belong to Lily. As a result, the funds were transferred to the scammer’s account.
Lily only discovered the scam when she compared email chains with HT Wills and noticed significant discrepancies. She believes that a simple phone call from the agent to confirm her details could have prevented the fraud.
The Impact
The financial loss has had a severe impact on Lily’s health and well-being. She described feeling “angry, upset, and frustrated” because the agents knew about her vision impairment. “I put all my trust in them, but now they leave me in the dark,” she lamented. The stress has affected her sleep, appetite, and overall quality of life.
Initially, the agent was sympathetic, but they have since stopped returning her calls. HT Wills referred inquiries to their lawyer, who confirmed that an incident occurred and is under investigation. However, they declined to comment further.
Expert Insights
Dan Halpin, a former policeman and intelligence officer who now runs a fraud investigation agency, Cybertrace, emphasized that relying on email confirmation is insufficient. He advised businesses to verify their clients’ identities by phone, using information only the client would know.
Halpin warned that Australians are particularly vulnerable to online scams, with cyber criminals seeing a high return on investment. Scammers are increasingly targeting Australians, knowing that local authorities often lack the resources to pursue them internationally.
The Bigger Picture
While the ACCC’s Scamwatch division reported a slight drop in scam reports over the last financial year, total losses to scammers remain significant. In contrast, Cybertrace has observed an increase in scam reporting, suggesting that many victims bypass government reporting and seek help directly from private agencies.
To combat payment redirection scams, experts recommend always verifying payment details by phone. This advice is echoed by the Real Estate Institutes of NSW, Victoria, Queensland, and WA. In Queensland, real estate contracts now include warnings about the risk of cyber crime, advising parties to confirm bank details by phone.
Halpin noted that while verifying details by phone increases workload, it is a necessary precaution when large sums of money are at stake. “In most cases of someone being scammed, it’s very unlikely that they will ever recover any of their money,” he concluded.
SOURCE: ABC