Six warning signs homebuyers must never ignore.

• Property deposit fraud is rising as scammers target buyers during the most vulnerable stage of the homebuying process.
• Spoofed emails, fake banking details and pressure tactics can cost buyers hundreds of thousands of rand.
• Experts say verifying every payment instruction could be the difference between securing your dream home and losing your life savings.

Before you pay: Six costly property deposit mistakes

Buying a home is one of the biggest financial decisions most South Africans will ever make. Yet, according to property fraud experts, the period immediately after an Offer to Purchase (OTP) is accepted is also when buyers are at their most vulnerable.

After months, sometimes years of saving for a deposit, searching for the right property and negotiating a purchase, buyers are often eager to complete the transaction. It is precisely this sense of urgency and excitement that cybercriminals exploit.

Once an OTP is signed, buyers face a series of important deadlines, from appointing conveyancing attorneys to transferring what is often the largest payment of their lives. Fraudsters know this and increasingly target buyers with sophisticated scams designed to divert deposit payments into fraudulent bank accounts.

The threat is real. According to TransUnion, South Africa recorded the highest suspected digital fraud rate in Africa in 2025, with fraudulent activity linked to 3% of all digital transactions.

For Jackie Smith, CEO of Buyer's Trust, homebuyers cannot afford to let their guard down.

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"A property deposit is not just another payment. For many buyers, it represents years of saving and one of the largest financial transfers they will ever make. Because buyers are excited and emotionally invested, they often act quickly on payment instructions without stopping to verify that everything is legitimate," says Smith.

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She believes every buyer should pause before transferring a single rand and watch for six warning signs that could prevent devastating financial loss.

Six red flags buyers should never ignore

1. The email doesn't look quite right

‍Fraudsters frequently intercept or imitate legitimate email correspondence, sending fake banking details at exactly the moment buyers expect payment instructions.

The differences can be almost impossible to spot, a single misplaced letter, an unfamiliar domain name or subtle spelling variations. Smith advises buyers to always inspect the sender's full email address rather than relying solely on the display name.

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"Small changes in spelling, unusual wording, unexpected attachments or unfamiliar links should immediately raise suspicion."

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‍2. You're being pressured to pay immediately

‍Pressure is one of the oldest tricks used by fraudsters. Messages claiming that "the seller is becoming impatient" or "the deal will fall through today" are designed to stop buyers thinking clearly.

In reality, the timing of deposit payments is normally stipulated in the Offer to Purchase, giving buyers sufficient time to verify banking details before making any transfer. If someone attempts to rush the payment process, pause and verify everything independently.

3. The banking details don't add up

Before transferring a deposit, buyers should confirm that the beneficiary account matches the person or organisation involved in the transaction.

Many South African banks now offer account verification tools that can help identify discrepancies before funds are transferred.

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"If the account details don't make sense, stop immediately. A property deposit is simply too significant to proceed on uncertainty," says Smith.

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4. Banking details change at the last minute

One of the biggest warning signs is receiving new banking details shortly before payment is due.

While legitimate changes occasionally occur, Smith says buyers should never treat these as routine administrative updates.

Instead, they should independently verify any amended banking details by telephoning the attorney or relevant party using previously confirmed contact information, not the number provided in the email.

5. The payment process feels informal‍

A property deposit should never be handled casually. If payment instructions arrive via WhatsApp, screenshots or forwarded messages without formal documentation, buyers should proceed with extreme caution.

Professional transactions should follow secure, structured processes with clear documentation and accountability.

According to Smith, secure deposit platforms such as Buyer's Trust provide buyers with an added layer of protection by opening dedicated accounts in the purchaser's name and maintaining transparency throughout the transfer process.

6. Nobody can explain what happens to your deposit‍

Buyers should always know: 

• Where their money will be held.
• Who controls the account.
• Whether interest will accrue.
• How they will receive statements.
• When funds will be released.

A lack of transparency should immediately raise concerns. Smith says buyers deserve complete visibility throughout the conveyancing process, particularly when transferring substantial amounts of money.

Security should never be an afterthought

As cybercrime becomes increasingly sophisticated, property fraud is evolving just as quickly.

Criminals understand the conveyancing process, monitor communications and exploit moments when buyers are under pressure to finalise transactions.

The combination of emotional decision-making, significant sums of money and tight deadlines creates the perfect environment for fraud. That makes vigilance just as important as securing finance or finding the right property.

A rewarding process

‍Purchasing a home should be one of life's most rewarding milestones, not one of its most costly mistakes.

By slowing down, independently verifying every payment instruction and refusing to be pressured into transferring funds before all details have been confirmed, buyers can dramatically reduce their exposure to fraud.

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As Smith concludes: "When so much is at stake, buyers should expect complete security, transparency and peace of mind before transferring their deposit. Taking a few extra minutes to verify payment details could protect years of hard-earned savings."

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In today's increasingly digital property market, caution isn't just good practice, it's one of the smartest investments a homebuyer can make.

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