Jackie Smith, CEO of Buyers Trust
Buying a home is one of the biggest financial decisions most people will ever make, yet experts warn that the period immediately after an Offer to Purchase is accepted is also when buyers are most vulnerable to fraud. With South Africa recording the highest suspected digital fraud rate in Africa in 2025, Buyer’s Trust CEO Jackie Smith shares six critical red flags every homebuyer should watch for before transferring a property deposit.
WORDS: SUPPLIED :: PHOTO: PEXELS
Few moments in the homebuying journey feel as exciting, or as high-pressure, as having an Offer to Purchase (OTP) accepted.
“After years of saving for a deposit or money to buy a home, months of property viewing and weeks of negotiation with the seller or their representative, it can all come together in a matter of days,” shares Jackie Smith, CEO of Buyer’s Trust, a safe and secure bank-hosted deposit solution for homebuyers. “But just when a buyer feels like they can stop holding their breath, the pace of the transaction accelerates.”
Once an OTP is accepted, buyers are faced with a series of time-sensitive tasks: from signing documents and meeting deadlines to appointing attorneys and transferring the deposit. With so much to coordinate, many buyers feel considerable pressure to keep the transaction moving quickly and smoothly.
This is also the point at which they are most vulnerable to fraud. “A deposit is not just another payment. For many buyers, it represents years of saving and one of the largest transfers they will ever make,” says Smith.
“Because they are excited, emotionally invested and often worried about slowing the deal down, buyers may act quickly on payment instructions without stopping to question whether everything checks out,” she adds.
Their caution is well-founded. According to TransUnion, South Africa recorded the highest suspected digital fraud rate in Africa in 2025, with fraudulent activity linked to 3% of all transactions.
Six Not to be Ignored Red Flags
Smith shares the six red flags buyers should never ignore before transferring a cent of their hard-earned money as follows:
Red Flag 1: Something feels off about the email
Sophisticated fraudsters often time their scams carefully, sending false banking details at the exact point when a buyer is expecting to receive a deposit instruction. They may use phishing or spoofing techniques to create an email address that looks almost identical to the original, hoping the buyer will miss small deviations. For example, two lower-case “n”s next to each other can look like an “m”.
To avoid this, Smith urges buyers to look beyond the display name and check the full email address for small changes, misspellings, extra characters or unfamiliar domains. “A sudden change in tone, unusual wording, spelling errors and unexpected attachments or links should all be viewed as warning signs.
Red Flag 2: Pressure to make the transfer immediately
In most property transactions, the timing of the deposit payment is set out in the Offer to Purchase, giving the buyer a clear window to prepare, confirm what is required and verify that banking details are legitimate before making the transfer.
For this reason, any attempt to rush the buyer past the deadlines as set out in the OTP should be treated with caution. Fraudsters often rely on urgency to stop people from thinking clearly, using lines such as “the seller is becoming impatient” or “the deal may fall through if proof of payment is not sent today.”
Red Flag 3: The account details don’t match up
The beneficiary’s name of the bank account where the deposit will be transferred should always make sense in the context of the transaction.
“Many banks offer tools that allow buyers to check whether account details match the person or organisation they intend to pay. Use them,” Smith says. “And if the details don’t line up, stop immediately. A property deposit is too significant to proceed on uncertainty.”
Red Flag 4: A last-minute change to banking details
A change in banking details at any point in the transaction should always give buyers pause, but even more so if the new instruction arrives just before the deposit deadline.
While legitimate changes can happen, Smith says buyers should never treat this as a routine admin update. “Fraudsters know that buyers are focused on getting the deal over the line. If the banking details change suddenly, the safest response is to stop and verify all details telephonically before making the transfer.”
Red Flag 5: The payment process feels informal
If banking details are shared informally, for example over WhatsApp, or the buyer is expected to rely on scattered messages, forwarded screenshots or unclear instructions, something might be amiss.
“When hundreds of thousands of rand are involved, buyers should expect a secure and professional process,” says Smith. “A service like Buyer’s Trust adds structure to this stage of the transaction by opening an account in the buyer’s name, issuing the required guarantee and giving the buyer transparency over their deposit while the transfer process unfolds.”
Red Flag 6: It’s unclear how your deposit will be managed
Buyers should always have full visibility on where their deposit will be held, who can access it, what records they will receive and whether interest will accrue while the transfer is underway.
“With Buyer’s Trust, buyers receive regular statements while their funds are placed in a maximum interest-bearing account, allowing them to realise the best possible return for the full period pending transfer. Once the account is closed, the net interest earned is calculated and paid over.”
“In a transaction where so much is at stake, buyers should expect both security and transparency before transferring their deposit,” she concludes.
