Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

New lead generation scam targets brokers

Steven Cross 6 minute read

A new scam operated by the 'company' Leads with a Difference has caught out one unsuspecting broker, who claimed he missed the signs of a fraudster.

A South Australia-based broker contacted The Adviser, reporting he was defrauded of almost $1,000 after replying to an email from the lead generation business.

The email claimed it would supply leads to mortgage brokers and planners, with a claim of a “7 day return policy… no ongoing commission payments to us”.

The email lacked any phone number or links to a website and requested brokers “reply to this email with your name and number”.


The broker discovered it was a hoax after he purchased a list of 25 names and attempted to call them.

“About a third of the numbers were disconnected, and the ones that I did get on to had no idea what I was talking about... The list claimed some were purchasing a new home or refinancing, and not one turned out to be true,” he toldThe Adviser.

According to the broker, all communication associated with the purchase of the leads was conducted via email or from a blocked phone number, and he had to turn to the police for assistance.

He has since admitted that he should have seen the signs and warned other brokers to be more vigilant.

“I guess hindsight is 20/20, but there were things that should have raised a flag, but they just didn’t,” the broker said.


“Certain things [the salesperson at Leads with a Difference] said, like ‘Don’t call me until after you have paid’, did not ring any alarm bells.

“I didn’t even pause to think after I said I would pay $100 less than he was asking for, and he accepted. But at the time he sounded legitimate, and I thought I’d give him a go.”

According to general manager at AFG Mark Hewitt, brokers should always be on their guard when dealing with faceless businesses.

“It’s not exclusive to brokers, it happens in every walk of life,” he told The Adviser.

“Whenever you’re buying something unseen, like leads, your guard should be up and you need to do you research. Ask questions, demand samples or find out past conversion rates before you hand over any money.”

While the unnamed broker admitted he didn’t lose a lot of money, he believes that if a dozen or more brokers were to fall for this scam, the fraudster would make a handsome return from his fraudulent activities.

“I just want to make sure that no other brokers get targeted like I was,” the broker said.

New lead generation scam targets brokers
TheAdviser logo

If you have ever considered how you could better service your SME clients but lack the knowledge or confidence to do this beyond referring them on, this is a must-attend event for you. Don't miss SME Broker Bootcamp, a jam-packed, free-to-attend, practical workshop. Register today and secure your place at this interactive, flexible, must-attend event.



more from the adviser
52053 transform

Breaking News

AMP Bank focuses on brokers for mortgage push

The third-party channel will play an intrinsic role in AMP Bank...


Breaking News

Fewer Australians intending to purchase property: CBA Research

Despite the country’s overall intention to spend increasing las...

mortgage calculator

Breaking News

Loan price war heating up: BOQ

Despite growth across each of its lending businesses, Bank of Que...