Investing in property is one of the biggest financial decisions a person is likely to make. New and increasingly sophisticated scams and incidence of fraud are on the rise and affect developers, buyers, sellers, estate agents, conveyancing attorneys, and other property professionals.
“As property transactions typically involve substantial sums of money, they are a natural target for fraudsters. Tactics range from impersonating estate agents to intercepting emails with instructions on where to make payment for transactions as well as notices of change of banking details instruction, says Ryan Mer, CEO, eftsure Africa, a Know Your Payee™ (KYP) platform provider.
While organisations like the South African Banking Risk Information Centre (SABRIC) have long warned consumers about various scams, Mer says they have been joined by leading South African estate agencies urging caution. “Criminal activity within the sector takes several forms. Individual con artists are nothing new, but with an increased reliance on electronic communication, for buyers, sellers, and property professionals alike, the prevalence of scams relying on technology has increased. This means implementing strict controls, especially when it comes to the electronic transfer of funds between bank accounts, is so crucial.”
The consequences of falling victim to a property scam are significant and can put individuals and businesses at serious financial risk. “If a buyer or conveyancer are successfully…
