Property deposits can represent years of savings, yet fraudulent payment instructions can put buyers’ money at risk within minutes. In 2025, SABRIC reported R595.9 million in losses linked to fraudulent home and mortgage loan applications, highlighting the financial stakes in property transactions. This complexity creates opportunities for criminals to exploit urgency, confusion, and misplaced trust.
The Cybersecurity Threat in Property Transactions
South Africa’s exposure to financial fraud is substantial, with property transactions particularly vulnerable. According to SABRIC’s 2025 Annual Banking Crime Statistics Report, fraudulent applications in the property sector alone resulted in significant losses, while digital banking crime accounted for approximately R2.4 billion. These figures highlight the scale of financial crime affecting consumers and institutions. TransUnion’s research further revealed that South Africa had the highest rate of suspected digital fraud among African countries in 2025, with about 3% of consumer transactions flagged as potentially fraudulent.
The threat is growing more sophisticated. INTERPOL’s 2026 African Cyberthreat Assessment Report noted the increasing use of AI-assisted deception, stolen credentials, and social engineering tactics. For property buyers, this danger is amplified because transactions involve large payments and extensive personal information exchanges. Jackie Smith, CEO of Buyer’s Trust, explains that modern property transactions rely heavily on digital communication. “Banking details, documents, instructions and confirmations often move over email, creating multiple points where criminals can intercept, impersonate, or manipulate the process,” she says.
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How Fraudsters Exploit the Process
A fraudster who successfully impersonates a conveyancing attorney, estate agent, or another trusted party may convince a buyer to transfer a deposit into an account controlled by criminals. Recovery becomes extremely difficult once the deception is discovered. The sophistication of these scams is increasing, as criminals use genuine personal and transaction details to make fraudulent instructions appear legitimate. A September 2026 incident involving RelyComply, a third-party identity verification provider, illustrates the importance of protecting personal information throughout the property finance process.
Information such as names, identity numbers, contact details, and banking information can be invaluable to criminals if exposed. When combined with property purchase details, this data can make fraudulent emails, calls, or payment instructions appear far more convincing. A buyer might receive an email that looks like it comes from the transferring attorney, references the correct property, and requests payment just before a genuine deadline. The message may look professional, contain accurate details, and even appear in an existing email conversation. “That is what makes these scams so dangerous,” Smith says. “The instruction can feel legitimate because it arrives at the right moment and contains enough accurate information to lower the buyer’s guard.”
For buyers, the lesson is straightforward: never rely solely on an email, WhatsApp message, or familiar-looking document when transferring a property deposit. Buyers should independently confirm banking details using a trusted source and treat any unexpected changes as a warning sign until verified.
Avoiding a fraudulent payment instruction is essential, but protecting a property deposit involves more than ensuring that money reaches the intended account. Once a deposit has been paid, buyers should understand exactly what happens to their funds while the property transfer is being finalized. Smith believes buyers should be asking more detailed questions before transferring their money. “Cyber safety in a property transaction is not only about spotting a suspicious email.
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It is also about making sure the buyer understands the process they are paying into. When a deposit is transferred, the buyer should know where it will be held, whose name the account is opened in, what records they will receive, whether interest will accrue and what happens if the transaction does not go ahead.”
These questions matter because deposits may be held under different arrangements, depending on the transaction and contractual instructions. Buyers should know who is responsible for administering the funds, what documentation confirms receipt, and how the money will be dealt with if the sale is delayed or cancelled.
Regardless of the solution used, homebuyers should understand the account arrangements, applicable safeguards, contractual terms, and the responsibilities of the parties handling their funds. Five checks before paying a property deposit include verifying banking details independently, questioning unexpected changes, confirming where the money will be held, requesting proper documentation, and understanding what happens if the sale falls through.
