Cyber crime has been on the rise in South Africa for a long time but the problem is far from limited to our own shores. James and Candace Butcher were ready to finalise the purchase of their dream retirement home and transferred $272 000 from their bank, following instructions they received by email. Within hours, their life savings had disappeared for good.
What the American family could not have known is that the email account belonging to the real estate settlement company had been hacked, and fraudsters had altered the transfer details to make off with all of the money. The horrific story highlights the severity of cyber crime these days and that such activity isn’t limited to governments taking action against one another covertly. Every year in South Africa, thousands of people (most notably the elderly) are defrauded of all of their money, and authorities have few capabilities to deal with it.
According to the FBI’s Internet Crime Complaint Center, the number of victims of email fraud involving real estate transactions increased by 1 110% between 2015 and 2017 and losses rose nearly 2 200%. In the instance of the Colorado family, they were able to successfully strike an undisclosed settlement with the bank and their real estate agent, who must have felt there was some chance a court would find against them in a trial.
This has been the case in the past. Courts have ruled both banks, private realtors and estate agencies at fault for not taking proper precautions against hackers. A blow which could close the doors of a small company, making it essential to update cyber security precautions. I’ve you’re looking to own property in Witbank, then ensure your real estate agent is taking every sensible precaution.
