As many of you may have seen on A Current Affair on 26th June, a story was aired about a distraught young couple who had sold their home and had committed to buying a new home. Between their sale settling and the date their purchase was due to settle, a scammer intercepted their sale proceeds by hacking into the electronic property settlement platform, PEXA and redirecting the funds to their own account.
It is understood that there have been several incidents affecting PEXA subscribers in Victoria, that have essentially left clients suffering the loss of their sale proceeds. No such incidents have occurred in NSW.
Since this most recent, publicised incident, PEXA have taken steps to avoid any further scams, including measures to control any new system users. Additional system alerts highlight recent updates made to transactions within the system.
It is also to be noted the responsibility for accuracy of the settlement details on the PEXA platform lies with the practitioner. Diligence is required right up until the moments before settlement takes place.
Cyber fraud and crime are one of the greatest business risks a conveyancing or legal firm, or real estate agent faces today as they hold large sums of money in Trust on behalf of clients. At Keystone, our practices and procedures are continually monitored and modified when necessary, to ensure that our clients’ privacy and security are protected. Our clients’ security is at the forefront of our practices.