Verification of Identity (VOI) has become a critical part of the real estate process in Australia, protecting agents, clients, and the overall integrity of property transactions. This becomes a regulatory obligation, with the Anti-Money Laundering Tranche 2 changes coming into effect in 2026. However, despite its importance, we appreciate that many agents still struggle with how best to implement VOI procedures in a way that is both compliant and convenient. Many solutions that ensure security are overly burdensome, while others are simple yet lack the necessary checks to identify fraudulent persons sufficiently.
With that in mind, this blog explores best practices for real estate agents looking to streamline their VOI processes while maintaining security and compliance.
Why does Verification of Identity matter?
Real estate agents are often the first line of defence against fraud in property transactions. Ensuring a buyer, seller, or tenant is who they claim to be is a critical safeguard in the property transaction lifecycle. Fraudulent activity, like property theft or using fake IDs, can have devastating consequences for agents, clients, and the Australian property market overall.
It’s not just about ensuring that the correct buyer, seller or tenant is dealing with a property. Ultimately, VOI helps protect agents from liability. Whether you’re a sales rep in New South Wales or a property manager in Western Australia, comprehensive VOI processes give you, your clients and your licensee confidence that every transaction you facilitate is secure and legitimate. Additionally, as part of the VOI process, agents will be able to ensure compliance with the upcoming changes to the Anti-Money Laundering and Counter-Terrorism Financing regulations in 2026.
What are the risks associated with current real estate VOI practices?
We’ve spoken to hundreds of real estate agents over the years to understand how they’re currently completing VOI, why they complete it this way, and what’s stopping them from updating their processes.
Understandably, a big part of why agents aren’t always adhering to best practices is the sheer amount of compliance and checks that need to be undertaken during the course of a transaction. The workload, particularly in recent times, is relentless. And so often, inadvertently, VOI falls by the wayside, and it is assumed that the identity of the person they’re dealing with is legitimate.
Some of the current risks we see in real estate VOI practices include:
1. Not completing VOI at all
Some agents skip the VOI process altogether, assuming their client is trustworthy based on familiarity or documentation provided. This is a huge risk. While they may previously have dealt with the legitimate owner, emails can be compromised, family disputes can arise or a myriad of other situations, which means that the client you thought you were liaising with is no longer who you’re actually dealing with.
Without proper verification for each transaction, agents have no assurance that the client is who they claim to be, exposing themselves and the transaction to potential fraud.
2. Sighting ID without back-to-source checks
Many agents rely on visual checks of ID documents. However, fake IDs are increasingly sophisticated and can be difficult, if not impossible, to spot without advanced tools. Anecdotally, the Australian Federal Police even commented at a recent property industry event that fraudulent IDs are becoming harder and harder to identify with the naked eye. Simply sighting ID documents leaves agents vulnerable to fraudulent transactions.
3. Receiving ID via email
Email is an inherently insecure communication method, making it a prime target for cybercriminals. Hackers often monitor email chains for high-value transactions, such as real estate transactions. They can then steal sensitive information like ID documents being emailed by legitimate buyers, sellers or owners to commit identity theft or fraud.
While most real estate businesses have secure systems in place, clients typically do not have this same safety net. Therefore, by requesting identity documents be sent to you via email, you are putting your clients at risk with unprofessional and below-standard methods of VOI.
4. ‘Facetiming’ clients to complete their VOI
Some agents we have spoken to have reported completing a Facetime or video call with their clients and sighting their ID that way. The buyer or seller is seen to hold their ID up to the camera, but this process is inherently risky, with the rise of people using deepfake technology. When you complete VOI via video call, there is no way to guarantee that the person you appear to be speaking to is, in fact, the genuine seller, owner or buyer.
5. Piggybacking off industry colleagues
Finally, we are aware that some agents request copies of client ID from the settlement agent or conveyancer involved in the transaction. The dual-check system (where both the real estate agent and conveyancing representative complete an ID check) is one of the safeguards in place in numerous jurisdictions around the country.
Additionally, requesting copies of these documents from a third-party is a breach of Australia’s strict Privacy Act and privacy regulations, putting both the real estate agent and conveyancer at risk of prosecution.
What are the VOI obligations for Real Estate Agents across Australia?
VOI requirements differ across states, but the importance of compliance is universal. Here’s a look at the obligations in some key regions:
Western Australia
In WA, REIWA recommends that its agents and sales representatives, in accordance with the Real Estate and Business Agents and Sales Representatives Code of Conduct, make all reasonable efforts to verify the seller’s identity and their authority to sell the property.
The WA Department of Mines, Industry Regulation and Safety (DMIRS) regularly issue warnings relating to property scam attempts and mandates that agents verify the identity of sellers before listing a property. This includes sighting the original ID documents and ensuring they align with the client’s details. However, DMIRS strongly recommends using robust systems to enhance the verification process and the security of client ID documents.
New South Wales
Fair Trading NSW highlights the necessity of agents adhering to identity verification practices in its Fraud Prevention Guidelines.
As a result of its recent partnership with Scantek & Dynamic Methods, REINSW is supporting its members in easily meeting these requirements whilst minimising the effort needed to complete the client’s VOI satisfactorily. By embedding VOI into existing workflows, compliance becomes seamless and less burdensome for agents.
Already, hundreds of NSW real estate professionals are using Scantek’s VOI solution through this recent REINSW partnership.
Victoria, South Australia, Queensland & Tasmania
For state-specific obligations, consult the resources provided by your local Real Estate Institute.
However, generally across the country, either explicitly mentioned in Codes of Conduct or similar regulations or otherwise inferred, real estate agents are expected to be reasonably satisfied with the identity of the persons(s) they are dealing with. In many cases, guidelines further encourage using technology to reduce human error and improve security in managing real estate transactions.
What are the best practices for secure yet convenient VOI?
1. Adopt digital solutions
Scantek’s Digital VOI Solution simplifies the process for agents and clients. By integrating biometric facial recognition, liveness detection, and back-to-source checks, digital tools provide superior accuracy compared to manual methods. Clients can complete their verification from anywhere, using just their smartphone, reducing the need for in-person meetings. An ID check using Scantek’s Digital VOI solution can be completed in less than 5 minutes.
2. Ensure compliance
While each state has differing obligations, using a VOI solution like Scantek ensures compliance with any specific legal requirements, as well as those that are inferred or simply expected. Features like geo-location tracking and document verification align with regulatory standards, giving agents peace of mind.
Further, the introduction of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws shortly will likely see additional compliance obligations placed on the real estate industry. Using a digital VOI solution that is ready to meet those obligations will ensure a smooth transition as these changes come into effect.
3. Protect sensitive information
Replace unsecure communication channels such as email or SMS-based ID collection with secure portals like Scantek’s. This ensures sensitive information is encrypted, securely received and only stored for as long as required, protecting the client’s sensitive information from cyber threats and the agent and brand from reputational damage.
4. Streamline your client experience
A complicated VOI process can frustrate clients and cause delays. Scantek’s intuitive app guides clients step-by-step, ensuring the process is straightforward and quick. Agents are notified as soon as verification is complete, allowing transactions to proceed without unnecessary delays.
The balance of security and convenience
In speaking to agents, one of the biggest challenges is finding the balance between robust security and client convenience. With tools like Scantek, this balance is achievable. The portal makes it simple to meet compliance obligations without adding unnecessary steps or costs. Features like automatic document verification, facial biometrics comparison, and liveness checks ensure that the additional effort required is negligible while the benefits are substantial.
Agents can also opt for an end-user pays billing method, where buyers, sellers, owners and tenants pay for their VOI at the time of completing it, or agent-pays, with a monthly invoice issued to the real estate agency at the end of each month for the number of completed transactions.
Why Scantek?
Scantek’s VOI platform is designed to address the unique challenges faced by real estate agents, property managers, and licensees. Here’s how it stands out:
- Advanced Technology: Combines artificial intelligence, machine learning, and biometrics for unparalleled accuracy.
- Security: ISO 27001 certified, with all data held with state-of-the-art encryption on Australian servers.
- Convenience: 24/7 availability, allowing clients to verify their identity anytime, anywhere.
- Compliance: Ensures agents meet state-specific requirements with ease, including yet-to-be-introduced AML/CTF obligations. AML and CTF checks will be embedded in the Scantek platform and will automatically be done as part of each VOI.
- Integration: Fits seamlessly into your existing workflows, as seen in our partnership with REINSW and Dynamic Methods.
The risks of inadequate VOI processes are too significant to ignore.
Without robust processes in place, it is only a matter of time before unsuspecting agents find themselves at the centre of a property fraud attempt. With Scantek, agents can save time, reduce risk, and provide a superior client experience, all while staying compliant and secure.
Ready to see how Scantek can transform your VOI process? Book a demo today and take the first step toward a more secure and efficient workflow. For REI Forms Live integration queries, including pricing, please log in to your REI Forms Live account or email membership@reinsw.com.au.