Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

Hackers are stealing millions from homebuyers and sellers with a crafty scam

Criminal hackers are making millions by targeting property sales, The Telegraph reports.

People both buying and selling homes are vulnerable to the fraud, which involves faking emails to trick people into sending funds to the hackers' bank accounts.

Nearly 100 incidents have been recorded, according to data seen by the paper, bringing in more than £10 million for those responsible.

demolition digger building
Philip Pessar/Flickr (CC)

Here's how it works:

  • First, the hacker gains access to the emails being sent between a real-estate agent and a prospective buyer or seller.
  • The hacker doesn't do anything — yet.
  • If a homebuyer is being targeted, the hacker will send an email pretending to be the real-estate agent as the deal is being finalised. The email will say the agent's bank details have been changed, and it will provide a new account for the buyer to send funds to.
  • None the wiser, the buyer sends a deposit (or perhaps even the complete amount) over to the hacker's account.
  • If a seller is being targeted, the hacker will email the agent or lawyers involved pretending to be the seller, again announcing a change in bank details and providing a new account to send the funds to.
  • If the fraud goes undetected, the agent or lawyer sends cash to the hacker.
  • Typically, the money is long gone by the time the buyer and real-estate agent realise what happened.

Who's behind it? The Telegraph reports the police's searches are coming up empty but they suspect "crime syndicates abroad." According to data from October, there were two incidents every week, making an average of £112,000 each time.

There are a few things you can do to mitigate the risk, like enabling two-factor authentication to keep third parties from gaining access to your email, or not opening suspicious email attachments to avoid being infected with malware. But if your real-estate agent or lawyer is targeted, it's out of your control.

The key thing is to double-check any changes at the last minute. If your agent is suddenly switching accounts, that should raise flags — call the person for confirmation before sending anything. And if you don't think you'll change your bank details midway through the sale, tell your lawyer or agent.

Jump to

  1. Main content
  2. Search
  3. Account