NSW homebuyers lose $275,000 in invoice scam after purchasing Blue Mountains property

A NSW couple have lost approximately $275,000 in an elaborate scam after receiving an email demanding they pay for their first home.

Simon Elvins and his wife had spent 10 years saving for their first home and were thrilled to buy a property in the Blue Mountains of NSW.

Mr Elvins received an email from someone he thought was his conveyancer detailing the purchase of the couple’s home.

The email had the exact details of the new property and also demanded that the couple pay $274,311.57 to finalize the upcoming settlement.

Details of the trust account for the payment were also included, including the BSB and an account name matching the haulage company that had employed Mr Elvins.

Simon Elvins (pictured) and his wife lost approximately $270,000 after being emailed a fraudulent invoice advising them to pay the next payment on their first home

Mr Elvin sent two transactions as the amount was too large to transfer in one go and waited to hear back from his carrier.

However, after not receiving a response, he emailed his conveyancer and estate agent, who informed him they never received the settlement payment and gave him the correct account details.

‘Everything seemed fine. So I paid it in two amounts, because the amount was too big to be done in one go”, said Mr. Elvin.

‘And I thought, ‘this account doesn’t look the same as the last one. Maybe they have two accounts… it became quite clear that we had been duped.

After realizing he had been duped, Mr Elvin immediately contacted Westpac, who then contacted NAB which was the fraudsters account bank.

However, it had already been a week since the second transfer and almost all of Mr. The Elvins were gone, with the two taking only $270.72.

Mr Elvin believes the fraudsters hacked the carrier’s email to create the fraudulent invoice.

Data from the Australian Competition and Consumer Commission’s Scamwatch shows that invoice fraud is on the rise in Australia.

The invoice scam focuses on large purchases, including renovations, property and cars, with Austrians losing around $23 million between January and September this year.

Australians reported 28,617 false billing scams in the same period – a 95 per cent increase on the previous year.

Consumer advocates are calling for banks to introduce a ‘payee confirmation’ policy to help stop hackers issuing fake invoices.

After transferring the amount, he waited to hear back from his carrier. However, after not receiving a response, he emailed the conveyancer and estate agent, who informed him that they never received the settlement payment.

In Australia, under the Bulk Electronic Clearing System (BECS), money is transferred regardless of whether the correct account name is used.

Consumer Action Law Center senior policy officer Tom Abourizk said banks don’t check whether the account name matches the account number even though customers are asked to fill in both details.

Some banks have started to introduce their own systems to prevent bill fraud.

This year, the Commonwealth Bank introduced NameCheck – a policy which highlights differences between account details and names.

Westpac would not comment on Elvins’ case, but said the bank detects 60 per cent of fraud.

“Where funds cannot be received, refunds are considered on a case-by-case basis taking into account a number of factors,” Westpac said.

Mr. Elvin and his wife were able to move into their home and not lose their $100,000 deposit.

Australians reported 28,617 false billing scams from January to September 2023, resulting in an estimated $23 million lost – a 95 per cent increase on the same period last year

However, they had to get lenders mortgage insurance and increase their mortgage, resulting in an extra $2,000 in monthly payments.

Aussies are urged to call a company or person asking for money to check their bank details match before making a payment to avoid fraud.

Customers are also advised to use the PayID transfer system as it reveals the name of the bank account holder.

ScamWatch advises those who believe they have been scammed should contact their bank, report the scam to the ACCC and notify the relevant website of the scammer’s name and profile details.