Scams Hit the Real Estate Industry
Australia’s real estate industry is facing a growing threat from cybercrime and fraud. More and more scams are happening during property sales and rental deals. Criminals are finding new ways to trick both businesses and individuals, stealing large sums of money by pretending to be someone they’re not.
One common scam involves cybercriminals pretending to be real estate agents, buyers, or legal professionals. They hack into emails and send fake messages during property transactions. These fake emails often include false bank details, tricking people into sending money to the wrong account. Some people have lost hundreds of thousands of dollars this way.
But that’s not all. Criminal groups are also using real estate to hide illegal money, a process called money laundering. This means they buy or sell property using money gained through crime. In one major case, a criminal group in Australia used real estate, cryptocurrency, and fake businesses to clean up nearly $190 million in illegal money.
To make things worse, some real estate companies have recently suffered data breaches. This means private information about clients, like names and bank details, has been stolen. In 2023 alone, Australians lost over $16 million in payment redirection scams linked to property deals. Businesses have lost even more—up to $90 million.
Why the Industry Is Easy to Target
Experts say part of the problem is how real estate deals are done. These deals involve many people—buyers, sellers, agents, banks, lawyers, and others. But most of them still use email to share important information, like bank account numbers or identity documents. Emails are not secure, and hackers can easily break in and steal or change the information.
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Another issue is how people prove who they are. Right now, many real estate businesses rely on scanned ID cards or paper forms. Sometimes, someone just looks at a photo ID and decides if it’s real. But fake IDs can be very convincing. This makes it easy for fraud to slip through unnoticed.
Also, many real estate businesses are small or medium-sized. They often don’t have enough money or staff to keep up with strong cybersecurity measures. That leaves them more open to attacks by hackers.
Digital Identity as a Safer Option
To fight back against cyber fraud, experts are pushing for real estate businesses to start using digital identity systems. These systems are a safer and smarter way to confirm who someone is during a deal.
Digital identity works by letting a person prove who they are using a trusted organisation, like their bank. Instead of sending a full copy of a driver’s license or utility bill, a person can just confirm their name or address through a secure app or website. This means there’s no need to email private documents, which keeps the data safe from hackers.
These tools also make things easier for businesses. They only collect the exact information they need. For example, if they just need to know a customer’s address, they don’t need their full ID or other private details. This reduces the chance of losing lots of sensitive data if a breach happens.
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Another benefit is that everyone involved in the property deal can be verified in real time. Whether it’s creating an account, signing documents, or making payments, digital identity checks can happen instantly. This builds trust and keeps scammers out.
Some real estate platforms in Australia are already using digital identity tools during document signing. These tools have made the process faster, safer, and simpler for agents and clients.
There’s also a legal reason for change. From 2026, real estate businesses will be included under new government rules that fight money laundering and terror financing. Plus, the Digital ID Act of 2024 now requires stronger privacy and security for identity checks. This means using safer identity tools is not just a smart idea—it’s becoming the law.
Digital identity systems help businesses stay compliant and reduce the amount of personal information they need to collect and store. Instead of keeping piles of documents, they only keep what’s necessary. That way, even if something goes wrong, the damage is smaller.
