Six signs of fraud to watch out for when buying property

Accelerated Deal Process

Smith notes that the process can conclude quickly within a few days after the buyer feels they can finally breathe a sigh of relief. Once the OTP is accepted, many urgent tasks appear on the buyer's agenda: signing important documents, meeting deadlines, appointing lawyers, and transferring a deposit. Unfortunately, it is during this critical period that buyers are most vulnerable to fraudsters.

Statistics and Warnings

According to TransUnion statistics, South Africa recorded the highest level of suspected digital fraud in Africa in 2025, with fraudulent activity linked to 3% of all transactions. Smith emphasizes the need for caution at this stage, as the deposit represents not just a financial transaction, but potentially years of hard-earned savings.

Six Signs of Fraud

To protect against fraud, Smith has identified six warning signs that buyers should not ignore before transferring any funds:

• Sign 1: Something is wrong with the email. Fraudsters skillfully use the element of time by sending false bank details exactly when the buyer expects instructions for the deposit. It is necessary to carefully check the full email address for minor changes, watch for spelling errors, changes in tone, and unexpected attachments.
• Sign 2: Pressure for immediate transfer. Sellers usually specify clear timelines for completing deals in the OTP. Any insistent demands to speed up the process may indicate fraudulent intentions, especially if accompanied by warnings about the seller's impatience.
• Sign 3: Mismatch of account details. The name of the recipient on the bank account must completely match the name of the person or organization involved in the transaction. Buyers are advised to use tools provided by their banks to confirm this information before proceeding.
• Sign 4: Last-minute change of bank details. Changes in banking information should always be viewed with suspicion. Any adjustments must be verified through direct contact, especially if they occur shortly before the deposit deadline.
• Sign 5: Informal payment process. A casual exchange of bank details, such as via WhatsApp or scattered messages, raises suspicion. When dealing with large sums of money, a structured process, similar to that offered by Buyer’s Trust, is expected.
• Sign 6: Unclear deposit management. Transparency is crucial. Buyers must understand where their deposit will be held, who has access to it, and whether interest will be accrued during the transfer process.

Smith concludes that in a deal where so much is at stake, buyers should expect both security and transparency before deciding to transfer their deposit.