In a WA Government statement scammers were said to intercept emails between the victim and his settlement agent, before altering bank details to reroute the payment.

“The scammers sent the buyer a fake email pretending to be the settlement agent, swapping the bank account details to one they control,” WA Finance Minister Sue Ellery said.

“The victim did not notice a slight difference in the email address.”

Eleven WA victims have reported losing a total of $503,285 so far this year to payment redirection scams. This exceeds the $501,028 lost by 29 victims in 2023.

A spokesperson from the Australian Competition and Consumer Commission (ACCC) said these scams are sophisticated, targeted, and well-researched, making them challenging to detect.

In the 2023-24 tax year, Scamwatch received 37,465 reports of false billing scams, with total reported losses nearing $18.4 million, according to an ACCC spokesperson.

Murdoch University Cyber Security expert Sebastian Zander said the incident underscores the urgent need for heightened cybersecurity awareness and vigilance amongst businesses and individuals.

“In some cases, the scammer has full access to the email account of the victim, allowing them to intercept communications and alter payment details,” Dr Zander said.

Dr Zander said there are two main types of scams – the first type involves sending random invoices in bulk, hoping someone will mistakenly pay them.

“I think it’s just a numbers game,” Dr Zander said.

Dr Zander said the second type is more targeted. In this type, scammers hack email accounts and issue fake invoices that appear legitimate.

Cath Hart, Chief Executive Officer of the Real Estate Institute of Western Australia (REIWA), said cybersecurity is crucial in the real estate sector.

“Cyber security was a focus of mandatory CPD training in 2023, which included training for payment redirection attempts,” Hart said.

REIWA did not address questions regarding the reported recent increase in payment redirection scams in WA.

Dr Zander said cybersecurity education is vital in preventing these types of scams, suggesting businesses and individuals take measures such as verifying payment details through a different channel and being vigilant about email addresses and invoices.

“One reason these scams are successful is because people don’t even know about them,” Dr Zander said.