A group of Western Australian settlement agents has foiled a scammer’s attempts to sell a $900,000 plot of vacant land they did not own, following a series of suspicious emails.
Consumer Protection Western Australia (WA) has issued a reminder about the importance of confirming sellers’ identities before a transaction, following the blocking of an overseas scammer’s attempt.
According to the watchdog, 10 settlement agents received identical emails from someone falsely claiming to be the owner of a vacant block in Yanchep, north of Perth.
The sender, who informed them they were overseas, requested a name change on the land title and assistance to sell the block for around $900,000.
The scammer also asked questions such as how their identity would be verified and whether they would need to attend a consulate to participate in a virtual meeting.
The agents, who were instantly suspicious, alerted the authorities and put an end to the scam.
According to Consumer Protection WA, agents must verify the identity of each person involved in a real estate transaction, preferably meeting the seller in person.
If a physical meeting cannot occur, they must use a face or document verification service, or, if the seller is overseas, use an Australian Embassy Office.
“The Codes of Conduct for the real estate and settlement industries provide that agents and sales representatives exercise due care, diligence, and skill when acting for a client, including a prospective client,” it said.
As a result of the incident, Consumer Protection has contacted real estate and settlement agents to remind them of their identity verification obligations and to provide further information on how to detect scam attempts.
WA Commerce Minister, Dr Tony Buti, said while the scam was caught in time, the incident was an important reminder to conduct mandatory identity checks, particularly if the person was unknown to them and overseas.
"Ultimately, if there is any doubt, they should report their suspicions to the proper authorities and not proceed with the transaction,” he said.
Consumer Protection commissioner, Dr Owen Kelly, agreed that it was critical for agents to be vigilant, given that property industry scams were becoming increasingly sophisticated and difficult to spot.
"Thankfully, in this case, the settlement agents recognised the warning signs early and took the appropriate steps to prevent what could have been a devastating financial and emotional loss for the legitimate property owner,” he said.
"We urge real estate and settlement agents to always take identity verification requirements seriously. Those who don’t could face prosecution, as well as damage to their professional reputation.”
Australian Institute of Conveyancers WA CEO, Brook Durling, warned that property scam attempts were likely to continue, making fraud prevention a shared responsibility across the entire sector and wider community.
“Being alert, asking questions, and reporting suspicious activity remains critical,” Durling concluded.
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