It’s an exciting time, buying a property. But don’t let your guard down – cybercriminals love the lucrative pickings on offer from property transactions, and they never sleep!
We’ll discuss the recent Supreme Court of Appeal case of a widow who, in trying to pay over the purchase price of a house, lost her R5.5m when her email system was hacked and she fell victim to a textbook email scam. Why did the SCA rule against her? How should she have protected herself? We’ll address those questions and share 5 steps you should take immediately to avoid falling into the same trap.
The Case of the Widow’s Lost R5.5m
What Happened?
In this case, a widow was purchasing a new home and was instructed via email to transfer R5.5m to what she believed was the legitimate bank account of the seller. Unfortunately, her email account had been compromised by cybercriminals who intercepted the communication and altered the banking details to their own account. By the time the widow realised what had happened, the money had been withdrawn and was unrecoverable.
The Supreme Court of Appeal (SCA) Ruling
The SCA ruled against the widow, stating that it was her responsibility to verify the authenticity of the banking details provided. Despite her tragic loss, the court emphasised the importance of due diligence on the part of the payer, especially in large financial transactions.
How She Could Have Protected Herself
The widow could have taken several precautions to avoid falling victim to this phishing scam. Here are some steps she should have followed:
- Verify Banking Details Independently: Always verify banking details through a trusted, independent source. Do not rely solely on email communications, especially for significant transactions. Contact the seller or real estate agent directly using known, verified contact information.
- Use Secure Communication Channels: Avoid sending sensitive financial information over email. Instead, use secure, encrypted communication channels or platforms designed for secure financial transactions.
- Enable Two-Factor Authentication (2FA): Enabling 2FA on email accounts can add an extra layer of security, making it more difficult for hackers to gain access.
- Be Wary of Unsolicited Changes: Be suspicious of any last-minute changes to payment instructions. Scammers often use urgency and sudden changes to trick their victims.
- Consult with Cybersecurity Experts: Engage cybersecurity experts to regularly audit and secure your communication channels, especially if you are involved in high-value transactions.
5 Steps to Protect Yourself from Phishing Scams
- Stay Educated and Vigilant: Educate yourself and your team about the common tactics used in phishing scams. Awareness is the first line of defence.
- Verify Everything: Always verify the legitimacy of requests for payment or sensitive information. Use multiple verification methods.
- Use Strong, Unique Passwords: Use strong, unique passwords for your email and online accounts. Consider using a password manager to keep track of them.
- Regularly Update Security Software: Keep your computer and network security software up to date to protect against the latest threats.
- Monitor Accounts Closely: Regularly monitor your bank and email accounts for any suspicious activity. Promptly report any unauthorised transactions.
Conclusion
The widow’s tragic loss of R5.5m is a stark reminder of the importance of cybersecurity in financial transactions. By taking proactive steps to verify information, secure communication channels, and stay vigilant, you can protect yourself from falling victim to similar scams. Stay informed and take cybersecurity seriously to safeguard your investments and financial well-being.
By following these steps and maintaining a high level of awareness, you can significantly reduce the risk of falling prey to phishing scams and ensure that your property transactions are secure.
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Stay safe and secure in all your financial dealings. Remember, a little caution can save you from significant losses.
For more detailed advice and assistance, feel free to reach out to our team. We are here to help you navigate the complexities of property transactions and cybersecurity.
Hope you enjoyed the read.
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