The Rise of AI-Powered Property Scams – What Every Homebuyer Needs to Know

Buying or selling a home has always been a high-stakes, high-pressure event.

The paperwork, the deadlines, the hundreds of thousands, sometimes millions of dollars changing hands.

But what most people don’t realise is that those exact conditions also create the perfect hunting ground for cybercriminals.

And now, because of artificial intelligence, property scams are becoming more convincing, more dangerous, and sadly, more common.

Almost every buyer would be fooled

New research from PEXA has uncovered a staggering truth: 97% of Australians who had either purchased a property in the past 12 months, or intended to in the near future, failed to spot obvious scam markers in a mock settlement email.

Yes, almost all of them.

This is despite the fact that most Australians believe they’re savvy enough to identify a scam.

Clearly, perception and reality are two very different things.

The Australian Competition and Consumer Commission (ACCC) paints an equally worrying picture.

Losses to property scams have ballooned from $13 million in 2021 to $43.2 million in 2024.

That’s a threefold increase in just three years.

And these aren’t isolated incidents. Victims include:

• A Sydney couple who lost $970,000 in a single transaction.

• A Western Australian buyer who was fleeced of $732,000.

• A retiree who narrowly avoided losing $800,000 when her conveyancer’s “email” requested early settlement and a change of bank account details.

Each story is heartbreaking, and each loss represents years of savings, hard work, and in some cases, entire retirements derailed.

How settlement scams work

According to PEXA here’s how the typical scam plays out:

1. Criminals hack into email accounts – usually those belonging to solicitors, conveyancers, or agents.

2. They monitor communications – watching and waiting until funds are about to be transferred.

3. A fake email is sent – appearing legitimate, but with “revised” bank account details.

4. Urgency is applied – buyers are told funds must be transferred immediately to avoid penalties or forfeiture.

5. Funds vanish – once the money is deposited, it’s usually transferred overseas within hours, making recovery almost impossible.

And unlike a fraudulent credit card charge, where banks can often reverse the transaction, property settlement scams involve direct transfers of very large sums.

Once the money’s gone, it’s gone.

Why AI is changing the game

In the past, scams were often easier to detect: poor spelling, awkward wording, or generic emails gave them away.

Not anymore.

AI tools now allow criminals to:

• Clone voices: Imagine receiving a call from someone who sounds exactly like your lawyer or agent, instructing you to pay urgently.

• Generate highly realistic emails: AI can perfectly mimic tone, structure, and even formatting.

• Create personalised attacks: With access to hacked inboxes, scammers know your timelines, property address, and exact financial details.

As Simon Birmingham, CEO of the Australian Banking Association, warned: “AI scams sound real, look real, and feel real. That’s what makes them so dangerous.”

The psychology of the scam

Part of the reason these scams succeed is because buyers and sellers are often under immense stress.

Property transactions involve:

• Large sums of money – life savings, retirement funds, or years of accumulated equity.

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• Short deadlines – payments must be made within strict settlement periods.

• Emotional pressure – excitement, fear of missing out, or stress about moving.

Criminals know this.

They prey on buyers’ emotional states, knowing most people won’t stop to scrutinise an email when the stakes feel so high.

What to watch out for

The warning signs are often subtle, but they exist:

• Last-minute changes to bank details.

• Urgent payment demands, often with threats of penalties.

• Altered or misspelled email addresses.

• Requests that arrive earlier or later than expected.

• Ignoring bank “Confirmation of Payee” warnings.

But PEXA’s research shows that most Australians are still overconfident, assuming they’ll “just know” when something is off.

Unfortunately, scammers are betting on that complacency.

How to protect yourself

So, what can buyers and sellers actually do to stay safe?

1. Verify every payment instruction by phone. Never transfer money based on an email alone. Call your solicitor, conveyancer, or agent on a known number.

2. Use secure communication channels. Email is convenient, but it’s also the weakest link. Encrypted portals are far safer.

3. Pause before acting on urgency. If you’re told something must be done “immediately,” that’s your red flag to slow down.

4. Double-check bank warnings. If your bank suggests the payee name doesn’t match, don’t override it.

5. Beware of phone calls. Even if the voice sounds familiar, hang up and call back on a trusted number.

6. Talk to your bank. Many banks now offer additional verification tools; use them.

Property has long been considered a safe and stable way to build wealth in Australia.

And while that remains true, the financial security we build through property is now increasingly under threat from criminals leveraging technology.

The sad truth is that technology cuts both ways.

AI can protect us, but it can also deceive us.

Banks and regulators are using AI to detect scams, but scammers are evolving just as quickly.

This means the burden of vigilance falls back on us; the buyers, sellers, and investors navigating these life-changing transactions.

Final thoughts

At Metropole, we always stress that successful property investment is about more than just buying the right asset.

It’s about protecting your wealth, managing risk, and thinking long-term.

And that protection now extends into the digital world.

So, the next time you receive an email about bank details or payment deadlines, don’t just click and pay.

Pick up the phone, verify, and protect your hard-earned money.

Because in today’s AI-driven world, it’s not just about finding the right property, it’s about making sure you get to keep it.