Lloyds Bank has recently reported a 29% increase in conveyancing scams over the past year, highlighting a growing threat to homebuyers.
Criminals are hacking emails to intercept property deposit payments, resulting in significant financial losses for victims. On average, individuals are losing around £47,000, with some losses exceeding £250,000. Alarmingly, around 45% of victims are aged 39 or under, making first-time buyers particularly vulnerable to this type of fraud.
Understanding How a Conveyancing Scam Happens
Conveyancing scams often begin when either the lawyer’s or homebuyer’s email account is hacked. Fraudsters monitor email exchanges related to property purchases, waiting for the perfect moment to send false payment details. They may send emails directly from the lawyer’s email account or create a spoof email address that looks almost identical.
These emails appear convincing, using the same names, logos, and signatures seen in the genuine chain. In some instances, fraudsters may even call the victim, impersonating someone from the lawyer’s office to reinforce the urgency of making the payment. The unsuspecting homebuyer is then tricked into transferring their money to an account controlled by the criminals.
How to Protect Yourself from Conveyancing Scams
- Verify payment instructions – confirm payment instructions with your solicitor in person, or over the phone using a phone number you trust, not from an email or invoice. You should do this at the start of the homebuying process and again before transferring any funds.
- Do a test transfer – transfer a nominal amount of money and confirm in person on the phone via a trusted number whether the payment has been received before making any further transfer.
- Be wary of changes – solicitors very rarely change their bank account details. Be extremely wary of any sudden changes and remember that email is not a secure communication channel for receiving payment instructions.
- Secure your email – use strong, unique passwords and enable two-factor authentication on all your email accounts. Always sign out of accounts if using shared devices and avoid using public or unprotected Wi-Fi connections.
- Avoid bragging online – don’t shout about your property purchase on social media, at least until you’ve got the keys in your hand. Criminals monitor posts and will target the email accounts of those who look to be in the process of buying a new home.
- Don’t be pressurised – fraudsters will try to put pressure on you to make a payment at short notice or risk the deal falling through. Never send money until you have picked up the phone and spoken to your solicitor on a trusted number.
- Pay attention to warnings – your bank might provide a warning about the payment, especially if the name of the account you’ve entered doesn’t exactly match the details of the receiving account. Always follow the advice provided as part of any warning.
If you have any concerns relating to conveyancing fraud or other legal concerns, please contact Swinburne Maddison on 0191 384 2441. Our team of experts is dedicated to helping you navigate the complexities of property transactions safely and securely.
