South Africa is ranked sixth among the world’s most cybercrime-affected countries. With October being Cybersecurity Awareness Month, here are some ways to protect yourself from falling victim to online real estate scams.
South African consumers cannot afford to ignore the risks involved in transacting online. Statistics from WonderNet reveal that in 2021, an average of 97 South Africans were targets of cybercrime every hour. This is particularly shocking seeing as only 60% of South Africans have regular access to the internet.
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The Real Estate industry is seen as an easy target for cybercrime. It is particularly vulnerable to fraudulent activity because of the large sum of money that is regularly exchanged when buying and selling a property.
Jackie Smith, Head of Buyers Trust, believes that consumers urgently need to educate themselves about the risks involved in making financial transactions online. With scammers becoming increasingly sophisticated, no one is safe from potential threats.
She says: “Unfortunately, the perpetrators of these online crimes are incredibly intelligent and are constantly updating their methods to make it harder to spot the difference between a legitimate and a fake communication or website.”
“The groups that are most vulnerable to cyberattacks are the elderly, individuals who do not use the internet regularly, those who rely on public and open WiFi networks for internet access and –increasingly, those operating in the real estate industry,” she adds.
Falsely advertising property for sale or rent has become a popular method of scamming in recent years. The people who post the adverts have no actual relation to the property in question. After an unsuspecting buyer or tenant makes a transaction, the property’s so-called lister vanishes.
Phishing is another type of cybercrime commonly experienced in the real estate sector. Phishing describes a cybercrime where scammers contact victims while posing as legitimate businesses. Once contact is made, cyber criminals persuade their victims to disclose private data. This data includes banking and credit card details, passwords and personal identification information.
Cybercrime in a real estate context can also involve criminals hacking into a company’s system. Once they have access to the system’s data, scammers study the company’s communication language, information formats and transaction types. This way they ensure their fraudulent communications appear to be legitimate – and more convincing.
“These types of crimes commonly and easily occur when e-mail records between the agent, buyer, and the respective lawyers to whom the deposit is paid, are intercepted and, ‘phished’, says Smith. “Many real estate agents and lawyers don’t have adequate security measures in place to safeguard a deposit from the risks of a sophisticated attack.”
Safety checklist for homebuyers when putting down a deposit:
Smith shares the following recommendations to help buyers protect their deposit when transacting online:
- Be vigilant about opening any emails you receive and don’t click on suspicious links or attachments.
- Validate any banking details from the bank in question before making a deposit.
- Always confirm with your agent before making any deposits. This confirmation should be in person or over the phone.
- Make sure that you keep your devices up to date with anti-malware software.
- Choose strong passwords that are not easy for an attacker to guess.
- Only connect to private WiFi networks that you know and can trust.
- To secure your purchase, consider using an alternative to the traditional depositing of cash into a trust account. Buyers Trust comes with a Bank Guarantee and provides a safe platform for deposit transactions that will protect you against the risk of phishing or other such cybercrimes.
Unfortunately, even when both real estate professionals and homebuyers follow safe cybersecurity practices, the possibility of human error remains.
“Even the savviest internet users are being caught out by these sophisticated scams and it’s simply not possible to 100% guarantee that you will be protected from any and all threats when transacting online,” says Smith.
When performing large financial transactions it is safest to use secure technology rather than performing deposits manually.
Platforms like Buyers Trust have been designed to ensure the highest level of security and give buyers peace of mind that their deposit is protected, from the second it leaves their bank account up until it is safely deposited in the seller’s account.
Smith concludes: “While many real estate agencies are making efforts to level up their cybersecurity, the nature and prevalence of cybercrime is a clear indication that buyers need to take special measures to safeguard their hard-earned deposits. It’s always better to play it safe!”
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