INDUSTRY

Payment Fraud Prevention for Property and Conveyancing

Property settlements are high-value, time-pressured, and involve multiple parties exchanging bank details. It is the perfect environment for payment fraud, and one of the hardest to recover from.

$152.6M lost to redirection scams (2024)

Settlements often $500K+

Tranche 2 AML/CTF from July 2026

Source: ACCC Scamwatch 2024

Why property transactions are targeted

Property is one of the highest-value payment environments in Australia. A single settlement can involve hundreds of thousands, or millions, of dollars moving between multiple parties in a compressed timeframe. For scammers, this is an ideal target: the amounts are large, the urgency is real, and the number of parties exchanging bank details creates multiple interception points.

A typical property transaction involves the buyer, the seller, their respective solicitors or conveyancers, the real estate agent, the bank, and sometimes a broker. Each of these parties needs to share bank account details at some point during the process. Each exchange is an opportunity for a scammer to intercept, modify, or impersonate.

Settlement dates create genuine time pressure. If bank details cannot be confirmed in time, settlement is delayed, which triggers financial penalties and contractual consequences. Scammers exploit this pressure, knowing that parties will rush through verification to avoid delays. This is the same dynamic that payment redirection fraud exploits across every industry, amplified by the size of property transactions.

Unlike regular supplier payments where you can reverse or recover funds over time, a redirected settlement payment is often withdrawn within hours. The money is gone before anyone realises the bank details were fraudulent.

Common fraud scenarios in property

These attack patterns target the specific way property transactions are conducted. Each one exploits a real weakness in how bank details are exchanged between parties.

Settlement instruction interception

A scammer compromises the email account of a solicitor or conveyancer and intercepts the settlement instructions sent to the buyer's bank. They modify the trust account details to redirect the settlement funds to their own account. The buyer's bank processes the payment to the fraudulent account. By the time the real solicitor asks where the funds are, it is too late.

Trust account manipulation

A scammer impersonates a solicitor or conveyancer and sends 'updated trust account details' to the other party. The email looks legitimate, often sent from a compromised or spoofed email address. The receiving party updates their records and sends settlement funds to the fraudulent account instead of the real trust account.

Vendor impersonation

A scammer poses as the property seller (vendor) and provides fraudulent bank details for the settlement payout. The conveyancer distributes the settlement funds to the scammer's account instead of the real vendor. The fraud is not discovered until the real vendor contacts the conveyancer asking where their money is.

Agent email compromise

A real estate agent's email is compromised through business email compromise. The scammer monitors the account, waiting for a settlement to approach. They then send fraudulent bank details to the buyer or their solicitor, often within a legitimate email thread, making the request appear genuine.

The Tranche 2 compliance factor

From July 2026, real estate agents, conveyancers, and lawyers become reporting entities under Tranche 2 of Australia's AML/CTF legislation. This means new obligations for customer due diligence, suspicious transaction reporting, and maintaining compliance programs.

For property professionals, this is a significant shift. Historically, AML/CTF applied primarily to banks and financial services. Under Tranche 2, the same obligations extend to the professionals who facilitate property transactions. AUSTRAC compliance will require these entities to verify the identity of their clients, monitor transactions for suspicious activity, and maintain detailed records.

Payment verification is a natural fit for these new obligations. By verifying the identity, business registration, and bank account ownership of every party before settlement funds are transferred, property professionals can meet their due diligence requirements while also protecting against fraud. The same verification flow that prevents a scammer from redirecting settlement funds also generates the evidence trail that AUSTRAC expects.

Firms that adopt payment verification now will be ahead of the compliance curve when Tranche 2 takes effect. Those that wait will be scrambling to implement new processes under regulatory pressure, with less time to test and refine them. The Scams Prevention Framework adds further obligations on businesses to take reasonable steps to prevent fraud.

How ezyshield protects property transactions

ezyshield verifies the person, the business, and the bank account before any settlement funds are transferred. Every party. Every transaction.

Verify every party

Biometric identity verification confirms the real person behind every bank detail exchange. Solicitors, vendors, agents, and buyers are all verified before funds move.

Confirm account ownership

Live Confirmation of Payee checks that the trust account or settlement account belongs to who it claims to. A real-time query to the receiving bank, not a database lookup.

Compliance-ready audit trail

Tamper-proof records of every verification. Exportable evidence for Tranche 2 compliance, professional indemnity claims, and regulatory enquiries.

See How ezyshield Works

Frequently asked questions

How common is conveyancing fraud in Australia?

Payment redirection scams cost Australians $152.6 million in 2024 (ACCC Scamwatch). Property transactions are high-value targets because settlement amounts are large, often exceeding $500,000, and involve multiple parties exchanging bank details. While there is no published figure for property-specific losses, the combination of high value and multiple exchange points makes conveyancing particularly vulnerable.

What is Tranche 2 AML/CTF and how does it affect property?

Tranche 2 extends AML/CTF obligations to real estate agents, conveyancers, and lawyers from July 2026. These entities will be required to conduct customer due diligence, report suspicious transactions, and maintain compliance programs. Payment verification becomes a core part of meeting these obligations.

Can ezyshield verify both parties in a property transaction?

Yes. ezyshield can verify the identity, business details (ABN/ASIC), and bank account ownership of any party in a property transaction: buyers, sellers, agents, solicitors, and conveyancers. Each party goes through the same multi-layer verification flow.

How does ezyshield protect trust account payments?

ezyshield verifies that the bank account receiving trust funds actually belongs to the entity it claims to be. Before any trust account payment is made, the platform confirms the person, the business, and the bank account ownership through live Confirmation of Payee. Any discrepancy blocks the payment until resolved.

Does ezyshield work for one-off settlement payments?

Yes. While ezyshield also supports ongoing supplier relationships with continuous re-verification, it is equally effective for one-off high-value payments like property settlements. The verification flow runs before each payment regardless of whether the payee is new or existing.

Protect your settlement payments

Every property transaction is a high-value target. ezyshield verifies the person, the business, and the bank account before settlement funds move.

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