Fraud Alert: High-Value Property Offers & Money Laundering Risks\ By Org Geldenhuys, Director and Principal of Abacus DIVISIONS
Over the years, we’ve seen a significant rise in fraudulent property offers—particularly on high-value properties or small to medium size commercial properties. The pattern is becoming clear: buyers make an offer, but the money never materialises.
Geldenhuys Says: "This growing trend is deeply concerning, as it not only affects estate agents but also puts legitimate buyers and sellers at risk. Not to mention that everybody's time and efforts are wasted on chasing transactions that will never materialise."
After speaking with fellow commercial brokers and estate agents that sell exclusive properties, it’s evident that this is a widespread issue. In many cases, the so-called buyers are business owners with international ties or "foreign investors." A South African Revenue Services (SARS) official specialising in international fraud recently confirmed that high-value properties are often used as a front for money laundering.
🚨 How the Scam Works:
💰 The buyer submits a signed offer to purchase.
💰 They use this offer to get funds released through the South African Reserve Bank (SARB).
💰 Once the money enters the system, it vanishes—never to be used for an actual property purchase.
This method of exploiting real estate transactions is a clear attempt to legalise illicit funds. One major red flag is when the offer includes no deposit—this ensures they have no financial commitment to the transaction.
🔍 A Growing Concern: Identity & Email Fraud
Fraudsters are also using these offers to gain access to high-net-worth individuals’ personal details, such as names, ID numbers, and contact information. Once they are copied into email chains between lawyers and estate agents, they can attempt to spoof or hack email credentials, redirecting funds, deposits, or payouts from legitimate transactions into their own accounts.
Geldenhuys Says: "This is not just about property fraud anymore—it’s a full-scale cybercrime operation targeting personal and financial information."
⚠️ High-Net-Worth Individuals Are Being Targeted
What’s even more alarming is that these international crime syndicates now have access to the personal information of wealthy South African individuals. This puts not only them but also their families and businesses at risk. With this information, criminals can engage in targeted phishing scams, fraud, identity theft, and even extortion.
Geldenhuys Says: "The consequences of these scams extend beyond real estate. They can have devastating effects on personal security and financial stability."
📣 Agents and brokers, have you encountered similar situations? Let’s raise awareness and share insights to protect our industry from these fraudulent schemes.