The recent 0,25% interest rate cut has seen a sense of cautious optimism in the local market. And, with consumer inflation falling to 4,4% in August 2024, its lowest since April 2021, this could spark interest from first-time buyers to enter the property market.
While this presents an exciting opportunity for homeownership, Kaspersky and Buyers Trust caution that it also opens the door for increased cybercrime, particularly phishing attacks and online scams targeting homebuyers.
“Whenever there’s a boost in market activity, especially in high-value sectors like property, cybercriminals seek to exploit the momentum. The property market is a prime target with everything from fake property listings, phishing emails, and fraudulent transaction schemes likely to increase as a result of the positivity in the local market,” says Brandon Muller, technical expert for the MEA region at Kaspersky.
Phishing, a technique used by cybercriminals to trick individuals into disclosing personal information or financial details, is on the rise across all industries. Kaspersky’s global anti-phishing system blocked more than 709 million attempts to access phishing websites in 2023, a 40% increase from the previous year. At the same time artificial intelligence (AI) tools are more often used by crooks to gather information and create convincing phishing e-mails and web pages.
As the South African property market gains momentum, cybercriminals are likely to increase their efforts in targeting homebuyers.
Buyers Trust, an innovative bank-hosted deposit solution for homebuyers, says fake property-related posts and listings on social media are cause for concern. Often, these posts and listings are used to lure buyers into phishing scams.
“We are all very aware of property scams currently taking place such as an influx of fake property listings and phishing crimes where fraudsters have intercepted an e-mail trail and reminded a homebuyer to pay a deposit over to the incorrect bank account. Scams like these often lead to fraudulent transactions, leaving victims without a home or their money,” says Jackie Smith, head of Buyers Trust.
Kaspersky and Buyers Trust warn that cybercriminals leverage several tactics to deceive homebuyers:
- Fake property listings: Scammers create fraudulent posts or a website featuring appealing property deals. Once the victim shows interest, they are asked to make a deposit or share sensitive financial details, only to find out later that the property does not exist.
- Phishing emails: These emails often masquerade as legitimate communications from real estate agents, banks, or financial service providers, tricking buyers to provide sensitive information in an answer or by filling in a form on a website, or to download malicious attachments that can deploy malware.
- Online transaction scams: As more property transactions move online, scammers are using this as an opportunity to impersonate legitimate parties, including attorneys or financial services providers, to intercept payments or redirect funds to their accounts.
“The property industry should acknowledge the increasing sophistication of cyber fraud. Lots of money is moved around daily during real estate transactions and implementing robust cybersecurity measures is essential to prevent these funds from falling into the wrong hands,” says Smith.
Experts recommend several measures that prospective homebuyers can follow to avoid falling victim to phishing and other online property related scams:
- Verify listings: Always verify property listings by contacting the real estate agent or company directly using their official channels. If a deal seems too good to be true, it often is.
- Use authorised financial service providers: When conducting transactions, ensure that you are working with an authorised financial service provider. Always verify the legitimacy of any financial institution or service provider before transferring funds.
- Watch out for phishing emails: Be cautious of unsolicited emails, especially those requesting personal or financial information. If you receive an email from a real estate agent or financial institution, call them directly to confirm its legitimacy.
- Invest in cybersecurity tools: Ensure your devices are protected with robust cybersecurity solutions.
- Be wary of social media deals: Avoid conducting sensitive transactions or sharing personal information via social media. Always use official communication channels for any financial or property-related matters.
“With the property market expected to heat up following the recent interest rate cuts, and with another possible cut still to come, buyers need to be aware of the risks that come with navigating the digital world of real estate. By staying informed and cautious, buyers can protect themselves from falling victim to these evolving cyber threats,” concludes Muller.