![[object Object]](https://umsousercontent.com/lib_lphGCikIbVHjRWIV/w8mzrofmgaa9b3om.png?w=52){kind=small}
You can do almost everything right and still get caught.
You save for months, sit through Saturday inspections from Preston to Pascoe Vale, survive the stress of finance, then finally sign a contract. At that point, most buyers are thinking about buildings insurance, moving boxes and whether settlement will land before the next rent payment. What often gets missed is the biggest money movement of the whole deal.
That is exactly why settlement scams hit so hard.
The message usually arrives when you’re expecting one. It looks normal. The logo is there. The wording sounds familiar. It may even sit inside a real email chain you’ve already been using. The scammer does not need to trick you with something wild or obviously fake. They only need you to believe that the bank details in front of you are the right ones.
For first home buyers, that can be terrifying. You’re already juggling lender calls, deadlines and paperwork. If you’re still getting your head around what happens on settlement day, the whole process can feel a bit like a blur. A fraudster counts on that pressure.
This is general guidance only. Your own purchase, contract and lender arrangements matter, so get advice for your own situation before acting.
Why this scam catches people out
Property deals are a perfect target for criminals.
Large amounts of money move in a short window. Buyers expect urgent contact near settlement. Most people are used to dealing with banks, agents and conveyancers by email. Add the pressure of a looming moving date, and it is easy to see why people act fast.
We’ve seen buyers in Melbourne freeze up over small contract issues, then relax once the Section 32 and finance are sorted. That’s often the moment they feel the hard part is over. In truth, the final stretch needs just as much care as the contract stage.
If you’re at the start of the journey, our first home buyers guide covers the broader buying path. Settlement fraud sits inside that bigger picture, and it deserves real attention.
How the scam usually unfolds
Most settlement scams are not dramatic. They are quiet.
A criminal may gain access to an email account or imitate one that looks almost identical to the real address. Then they wait. They read the thread, learn the names involved, note the property address, watch the timing and copy the way your conveyancer or agent normally writes.
Then, right before money is due to move, they send a message saying the account details have changed, or that you now need to transfer to a different account for settlement. Sometimes they add pressure by saying the funds must be received that day to avoid delay.
That pressure is the trap.
Picture this. You’re in the CBD at work, your phone is buzzing, your lender has called twice, and a message lands saying the transfer needs to happen before 2 pm. You don’t want to be the person who holds up settlement. So you pay. Later, you find out the money went to a criminal account.
One point often gets lost here: the scam does not have to mean the electronic settlement platform itself was broken into. The weak spot can be the ordinary email traffic around the transaction. That is why secure communication habits matter so much.
The warning signs that matter most
The biggest red flag is a change to bank details.
Treat any email, text or attachment changing payment instructions as suspicious until you have checked it through a separate channel. Not the number in that message. Not the link in that message. Use the phone number already saved in your contacts, the number on the firm’s website, or the number you have used throughout the matter.
A few other signs should make you stop straight away.
A message feels oddly urgent when earlier emails did not. The sender address is just slightly off. The wording sounds close to your usual contact, but not quite. A new mobile number appears. There is a push to pay before you have had time to call and check.
Scammers are good at small details. They know buyers are not sitting there doing a character by character review of an email address while trying to get on with work and life.
If something feels off, pause. Ring. Confirm.
That one phone call can save your deposit.
What your conveyancer should be doing
A careful conveyancer does much more than shuffle forms and book settlement. If you want a clearer picture of the role, have a read of what does a conveyancer do when buying a house. From a scam prevention point of view, the short version is this: they should have a clear, disciplined process for handling money instructions.
In practice, that means a few things.
They should tell you early in the transaction how payment instructions will be shared and how they will be checked. They should be very cautious about sending trust account details by ordinary email. Many firms now use secure channels for sensitive information rather than relying on the same inbox used for day to day correspondence.
They should also have a set rule that any payment direction is checked by phone using a known number. Not only when something looks suspicious. Every time.
In Victoria, identity checks are also part of the conveyancing process. That helps reduce the risk of someone pretending to be a party to the deal. From 1 July 2026, conveyancers will also move under tighter federal anti money laundering and counter terrorism financing rules. Buyers may notice more customer due diligence and extra verification steps. That may feel like one more item on the list, but extra checking is far better than a rushed transfer to the wrong account.
If your matter is settling electronically, and most Melbourne matters do, ask how the firm handles bank details outside the main email chain. If you are already reading up on how long does settlement take on PEXA, keep this in mind too: speed is only one part of the story. The safer question is how your details are being exchanged and confirmed before settlement funds move.
Simple ways to lower the risk
Buyers do not need to become cyber experts. You just need a few hard rules.
Set them early, before the pressure starts.
Tell your conveyancer at the outset that you will not act on changed bank details sent by email alone. Ask them to note that on file. Save the correct office number in your phone. If there is a secure app or portal for bank details, use it. When you receive payment instructions, slow down long enough to check every step.
It also helps to keep one written rule in your head: no last minute money transfer happens until I verify it off the email thread.
That sounds simple because it is. But simple beats clever here.
What to do if you think money has gone to the wrong account
Move fast.
Call your bank’s fraud team straight away and ask for an urgent recall or hold on the payment. Then call your conveyancer on a number you already trust and tell them what happened. After that, report the incident through ReportCyber and follow any direction about police reporting. You should also make a scam report through Scamwatch.
Do not wait to see whether the money turns up. Do not assume the receiving account belongs to a real business because the name looked familiar. Do not keep emailing the suspect address asking for an explanation.
Speed gives you the best chance of stopping the money before it is moved again.
It is also wise to ask what personal information may have been exposed during the scam. If copies of identification documents, bank details or contract papers were sent through the compromised thread, there may be more work to do after the payment issue is dealt with.
One more point buyers should hear clearly: recovery is not something you can count on. Some losses can be traced or frozen. Others cannot. In Victoria, there are compensation pathways in narrow situations involving misuse of trust money by a licensed conveyancer or agent, but a third party impersonation scam can be much messier. Prevention is still the safest path by a long way.
Choosing a conveyancer with security in mind
A lot of buyers compare conveyancing quotes on price and little else. That is understandable. Buying in Melbourne is expensive enough.
But a cheap fee will not feel cheap if the firm’s communication process leaves your deposit exposed.
When you are comparing firms, ask direct questions. How do you send bank details? Do you ever change account details during a matter? How do you confirm payment instructions? What happens if a buyer receives a suspicious email? Who should they call, and on what number?
If you want a broader list, our article on questions to ask your conveyancer before you hire them is a good place to start.
You are listening for more than polished words. You want a clear process. Calm answers. No vagueness. No shrugging. No ‘we usually just email that through’.
That sort of discipline matters just as much as turnaround time.
A safer settlement starts well before settlement day
By the time a fake payment email lands, you do not want to be making security decisions on the fly.
You want the ground rules already set. You want to know which number to call. You want a conveyancer who expects this risk and has a plan for it. You want the legal side checked properly from the start too, because buyers who feel rushed or uncertain are easier to pressure later on.
That is one reason a proper contract and vendor statement review still matters. A complimentary review can flag legal issues early and help you move through the rest of the transaction with more confidence. If you have not had your contract checked yet, our article on Section 32 red flags is a useful starting point.
At Pearson Chambers Conveyancing, we take settlement security seriously. We keep sensitive financial information out of casual email traffic where possible, we verify payment instructions through separate channels, and we guide buyers through the process in plain English from sign up to settlement.
If you’re buying in Melbourne and want tailored guidance, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review.