A Growing Scam Threat in the Property Market
Buying a new home is one of the largest financial commitments most people will ever make. Unfortunately, scammers know this too.
A concerning trend has emerged in the property market: fraudsters are targeting purchasers of new launch developments by impersonating developers, sales representatives, property agents, lawyers, or project-related personnel. Their objective is simple — trick unsuspecting buyers into transferring large sums of money into fraudulent bank accounts under the guise of legitimate progressive payments.
For home purchasers, especially first-time buyers, understanding how these scams operate could mean the difference between protecting your life savings and suffering a devastating financial loss.
What Is a Progressive Payment Scam?
In a typical new-launch property purchase, buyers make payments progressively as construction milestones are completed.
Scammers exploit this process by contacting purchasers and falsely claiming that a payment instalment is due. These communications may come through:
- Phone calls
- SMS messages
- WhatsApp messages
- Emails
- Social media platforms
The scammers often sound convincing because they may possess basic information about the project, the purchaser’s name, or even details about the unit purchased.
They then provide bank account details and pressure the purchaser to make an immediate transfer, claiming it is necessary to avoid penalties, late fees, or delays in the transaction.
Once the funds are transferred, they are usually impossible to recover.
Why These Scams Are So Dangerous
Unlike many online scams involving relatively small amounts, progressive payment scams target transactions that can easily involve tens or hundreds of thousands of dollars.
A single fraudulent transfer could result in:
- Significant financial losses
- Delays in property completion processes
- Legal complications
- Emotional distress and anxiety
- Difficulty recovering funds from overseas or mule accounts
Because property purchases involve multiple parties—including developers, lawyers, banks, agents, and sales representatives—fraudsters exploit the complexity of the process to create believable stories.
How the Scam Typically Works
Step 1: Initial Contact
The scammer reaches out pretending to represent:
- The property developer
- The developer’s sales team
- A property agency
- A project administrator
- A lawyer’s office
- A bank representative
Step 2: Urgent Payment Request
The victim is informed that:
- A progressive payment is due immediately
- Construction has reached a payment milestone
- Payment deadlines are approaching
- Late payment penalties may apply
Step 3: Fake Payment Instructions
The scammer provides:
- A bank account number
- Transfer instructions
- Payment deadlines
- Supporting documents that may appear legitimate
Step 4: Pressure and Manipulation
Victims may be pressured with statements such as:
- “The payment must be made today.”
- “Your purchase may be delayed.”
- “You could incur penalties.”
- “This is a last reminder.”
Step 5: Funds Are Lost
Once the money is transferred, the scammer disappears.
The Most Important Rule Every Purchaser Must Remember
Progressive payment notices and payment instructions should only come through your appointed law firm acting on your behalf in connection with your purchase. This is one of the most critical safeguards in the new launch purchase process. Your lawyer serves as the official intermediary between you and the developer regarding payment matters.
If anyone else contacts you directly to request payment, treat the request as suspicious until it is independently verified.
Red Flags That Should Immediately Raise Suspicion
Be extremely cautious if you encounter any of the following:
1. Direct Requests for Payment
A caller, texter, or email sender asks you to transfer funds directly to a bank account.
2. Changes in Bank Account Details
You receive instructions claiming that payment accounts have changed.
3. Urgent Deadlines
The sender pressures you to act immediately without giving you time to verify.
4. Unsolicited WhatsApp Messages
Payment instructions arrive through personal messaging applications rather than formal legal correspondence.
5. Poor Grammar or Unusual Communication
Emails contain spelling errors, unusual language, or unfamiliar email domains.
6. Requests to Bypass Your Lawyer
Anyone suggesting you deal directly with them for payment purposes should be treated with extreme caution.
How to Protect Yourself
Verify Through Your Appointed Lawyer
Always contact your lawyer directly using previously known contact details.
Do not use phone numbers or email addresses provided in suspicious messages.
Never Transfer Funds Based on Informal Communications
Do not act on instructions received solely through:
- Phone calls
- SMS
- Social media messages
- Unverified emails
Confirm Bank Account Details
Before transferring any funds, independently verify the beneficiary account with your law firm.
Take Your Time
Legitimate parties understand the need for verification. Scammers rely on panic and urgency.
Keep Records
Save suspicious messages, emails, screenshots, and call details. These may assist investigations if needed.
What To Do If You Receive a Suspicious Payment Request
If you receive any communication requesting payment:
DO NOT:
❌ Transfer any money
❌ Reply with personal information
❌ Click on links or attachments
❌ Assume the communication is genuine
DO:
✅ Contact your appointed lawyer immediately
✅ Contact the developer’s official sales team or management office
✅ Verify all payment instructions independently
✅ Report the suspicious communication to the relevant authorities if necessary
What If You Have Already Made a Transfer?
Time is critical.
If you suspect you have transferred funds to a scammer:
- Contact your bank immediately.
- Request an urgent recall or freeze of the transaction.
- File a police report without delay.
- Inform your lawyer and the developer.
- Preserve all communications and evidence.
The faster action is taken, the greater the chance that funds may be recovered.
Verify First, Transfer Later: Protecting Your Home Purchase
Property transactions involve substantial sums of money, making them an attractive target for increasingly sophisticated fraudsters. Scammers are becoming more convincing, often impersonating legitimate parties and creating a false sense of urgency to pressure purchasers into making costly mistakes.
Every purchaser should remember one simple principle:
Never transfer funds based solely on a phone call, text message, WhatsApp message, email, or instruction from an unknown party.
All progressive payment instructions should only be acted upon after verification through your appointed law firm.
A few minutes spent verifying payment instructions can protect your home purchase, your savings, and your peace of mind.
When it comes to property payments, always verify first, then transfer.
Article contributed by Jerry Wong.
Jerry Wong is a realtor at Propnex Realty, bringing a rich background in interior and lighting design to his work. He loves exploring diverse spaces and observing the transformative power of real estate. Beyond his professional role, Jerry finds his greatest fulfillment in connecting people with the right properties, gaining immense satisfaction from helping clients achieve their dreams.
