Property ownership in South Africa faces increasing threats from sophisticated fraud and hijacking schemes. Industry experts warn homeowners to remain vigilant and proactive in safeguarding their investments against these evolving risks.
Image: Timothy Bernard/Independent Newspapers
Property ownership remains one of the most significant financial commitments for South Africans, yet it is increasingly vulnerable to organised and sophisticated criminal activity. Industry leaders and civil society organisations warn that property fraud and hijackings are becoming more prevalent, driven by a combination of economic pressures, evolving technology, and enforcement gaps.
Grant Smee, CEO of Only Realty Property Group, says the rise in property transactions has created fertile ground for exploitation. “Property fraud is not new, but it has become sophisticated and far more prevalent. As market activity increases, so do the opportunities for fraudsters,” says Smee.
According to Smee, the digitisation of property transactions has introduced new risks. “Email communication, online listings, and electronic payments have made processes faster, but also easier to manipulate. This has opened the door to cybercrime, identity theft, and even AI-driven scams that are harder to detect.”
He adds that financial strain is making buyers and renters more vulnerable. “They prey on people trying to secure a home quickly or chasing what seems like a good deal.”
Fraud in the property sector takes multiple forms, often with severe financial consequences for victims. One of the most alarming is title deed fraud, where ownership is transferred without the knowledge of the rightful owner.
“This is where people transfer ownership of a property without the owner’s knowledge, often using stolen identities or forged documentation. These cases are particularly alarming as people could lose ownership of their homes entirely,” says Smee.
According to Smee, reports indicate incidents in Khayelitsha have underscored the severity of the issue, with some residents discovering through municipal records that their homes had been transferred without consent, while others reported duplicate title deeds.
Smee notes that outdated systems and verification gaps contribute to the problem. “Legacy systems, including the old South African ID book, and gaps in verification can lead to such fraud. The rollout of Smart ID services will help in reducing this risk, but people must remain vigilant.”
Smee says more extreme cases involve outright property hijacking, where criminal groups take physical control of buildings. These operations often target vacant or poorly managed properties, but are not limited to them. He says in Johannesburg’s Bryanston, 17 homes were investigated after being hijacked, with one property reportedly turned into an informal settlement while the owners were away. Similar cases involving city-owned properties have also been reported, pointing to a broader pattern. “In many cases, it begins with unlawful occupation or fraudulent leases before escalating into full control of the property,” says Smee.
A growing body of research suggests that these incidents form part of a wider and entrenched problem, particularly in inner-city areas. The South African Property Owners Association (SAPOA) has identified building hijacking as a major risk to the property sector, noting that syndicates often take over buildings, collect rent unlawfully, and neglect maintenance, leading to rapid urban decay.
Another growing concern is email interception fraud. Criminals monitor communication between buyers, estate agents, and conveyancers, then insert themselves into the process with altered banking details. “A buyer thinks they’re paying a legitimate account, but the funds are diverted. This presents a double risk; they lose their money and risk breaching the agreement of sale, becoming liable for damages,” says Smee.
Fraudulent property listings are also on the rise, with scammers advertising homes they do not own using stolen images from legitimate platforms. Victims are lured into paying deposits up front, only for the perpetrators to disappear. “They secure deposits upfront and disappear. If the deal looks too good to be true, it usually is,” says Smee.
In addition, Smee says syndicates are increasingly impersonating estate agents, sellers, and even attorneys involved in property transfers. These scams often rely on convincing documentation and digital identities. “They create highly convincing profiles and documentation. With many transactions happening without face-to-face interaction or viewings, it’s difficult to pick up on this,” says Smee.
Misrepresentation within legitimate transactions remains another persistent issue, Smee says. Buyers or sellers who withhold critical information can also commit fraud, particularly where financial loss is involved. Transparency, Smee says, is essential to reducing disputes and preventing exploitation.
While the risks are escalating, industry experts stress that preventative measures can significantly reduce exposure. Securing vacant or underutilised properties is a key step, as these are frequent targets for hijacking. Regular inspections, visible occupation, and layered security measures can deter criminal activity, while any signs of unauthorised access or illegal utility connections should be addressed immediately through legal channels.
Verification is equally critical. Smee advises that all parties in a transaction should be independently confirmed using trusted contact details rather than relying solely on email communication. Banking details, in particular, should never be accepted without direct confirmation. He also emphasises the importance of keeping documentation up to date, including title deeds, municipal accounts, and lease agreements, as gaps in paperwork can be exploited to delay evictions or assert fraudulent claims.
“Any last-minute change in banking details should raise an immediate red flag. Fraudsters create urgency, so take your time and double-check everything before transferring funds,” Smee warns.
Civil society organisations have also raised concerns about the growing scale of property hijacking. In 2022, AfriForum published a public manual outlining legal rights and preventative strategies for property owners. The organisation argues that hijackings are being driven by organised syndicates operating in an environment shaped by weak enforcement and outdated legislation.
“It is better to prevent a crime than to react to it. That is why AfriForum is helping its members and the public in general to position themselves in such a way as to prevent property from being invaded or hijacked. This is, of course, more cost-effective than paying the legal costs associated with obtaining an eviction order,” says Ernst van Zyl, campaign officer for strategy and content at AfriForum.
As property fraud evolves in both scale and sophistication, the message from industry and advocacy groups is consistent: vigilance, verification, and proactive security measures are essential. “Property is one of the biggest investments you’ll ever make. Take the time to verify every detail, work with trusted professionals, and never let your guard down,” says Smee.
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