Settlement scam losses mount as detection rates fall and criminals turn to AI-enabled voice fraud
Confidence among Australians in their ability to detect property settlement scams has declined over the past year, according to new research published by PEXA, even as general awareness of such fraud remains high.
The second annual Settlement Scams Index from PEXA surveyed over 1,000 Australians — comprising those who had purchased a property in the preceding 12 months and those intending to do so — and found that 41% of respondents felt confident in their ability to spot a settlement scam, down from 51% the previous year.
Despite this, 92% of respondents reported awareness of at least one type of property scam.
The gap between awareness and detection was sharpest in a simulated email test included in the study. Some 42% of participants failed to identify any scam indicators in a fraudulent email, and 99% missed the use of a fake email address — even after being told in advance that the email was a scam.
The research also found that almost nine in 10 respondents consider property transactions to be among the most stressful experiences of their lives, more so than relocating interstate or overseas, or going through a divorce.
"These results are concerning, but not surprising," said Graham Fairley (pictured right), group chief information security officer at PEXA. "As scammers get more sophisticated, they are becoming harder to detect by average Aussies, especially during a stressful time of their life.
"Property transactions are often the biggest financial decisions in people's lives. When scammers strike during these stressful yet critical moments, the consequences are significant."
Fairley said the nature of the threat distinguished property settlement fraud from other forms of cybercrime. "In property settlement scams, cyber criminals compromise trust, not systems," he noted. "They use highly convincing forms of communication that trick victims with urgent demands to send money to the wrong bank by impersonating trusted parties involved in the transaction such as real estate agents, lawyers or conveyancers."
The research identified business email compromise as the primary threat, though Fairley flagged an emerging risk. "An emerging concern during property settlements has been the use of AI-enabled voice cloning – the email or voice on the phone may sound familiar, but that doesn't mean it is genuine," he said.
On prevention, Fairley pointed to government guidance and available secure settlement tools. "Awareness is the first step towards safeguarding the property journey," he stressed. "Today, consumers can use secure settlement tools such as PEXA Key to safely exchange bank account details and can rest assured that those details won't be compromised.
"Most importantly, follow government advice to 'Stop. Check. Protect.' Australians must pause if they receive unexpected changes in payment instructions, instead of taking action under pressure. Verify the request independently, either in person or by calling the property professional on a known number. Consumers should also take Confirmation of Payee warnings by their bank seriously, and must contact their bank immediately if they believe they've been a victim of scam."
The PEXA findings coincide with Scams Awareness Week, which runs from 24 to 28 August.
The broader scam landscape adds further context. Separate data from Scamwatch shows Australians filed 91,767 reports between January and June 2026, with $156.6 million in reported losses.
A May 2026 survey of over 1,000 respondents by comparison platform Finder found that 23% of Australians — an estimated 4.9 million people — had lost money to scams.
Online shopping scams were the most prevalent, affecting one in 10 Australians, or more than 2.1 million people. Investment and property-related scams accounted for 4% of reported losses, with cryptocurrency scams at 5%, and insurance fraud, superannuation or self-managed super fund scams, and romance scams each affecting 3% of respondents.
"Unfortunately scammers are becoming more convincing and harder to detect," said Sarah Megginson (pictured right), personal finance expert at Finder. "Online shopping scams are even more dangerous because they often look exactly like legitimate stores. Scammers create professional-looking websites, advertise heavily on social media and lure Australians in with deals that seem too good to pass up
"Before you buy, take a moment to check reviews, verify the website if you haven't shopped there before and pay using a method that has the potential to lodge a complaint with the retailer, like PayPal. If a retailer is offering a luxury item at a fraction of the usual price, that's a major red flag. Also be mindful of pressure tactics and countdowns – they're designed to make you rush your purchase.
"To avoid being scammed you want to slow down, checkout when you're ready and feel good about your purchase, not pressured into making a decision you might regret later."
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