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Conveyancing fraud

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 14. June 2024

Interested to speaking to mortgage brokers about conveyancing fraud. 

Research by Lloyds Bank shows that conveyancing scames are up by almost a third and the average cost can come to £47,000. 

https://www.mortgagesolutions.co.uk/news/2024/06/13/conveyancing-scams-up-by-almost-a-third-with-potential-47000-bill/

  • Have you seen a rise in this kind of fraud?
  • What advice do you give customers around conveyancing fraud?

3 responses from the Newspage community

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Editor
Chris Barry
Director at Thomas Legal
Conveyancing fraud is certainly on the rise. The main targets seem to be around transferring funds.

Hotmail accounts are the most common targeted and whereas Gmail rarely feature.

Chose a law firm with an app as the end to end encryption reduces the chances of interception and make payments via the firms website where possible.

Other best practice includes calling the firm on the telephone number stated on their website or Google to confirm bank details before sending money
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Editor
Dariusz Karpowicz
Director at Albion Financial Advice
Unfortunately, this happens very often, mainly because people aren't aware of what scammers can do these days. They can spoof calls from solicitors' phone numbers and send emails that look genuine. I had a case where scammers called my client on a Sunday. Unfortunately, that didn't raise any suspicion, and the client was asked to transfer part of the deposit, which he did. Luckily, his bank refunded the funds, but the scammers still succeeded in creating stress and confusion.

To help customers avoid conveyancing fraud, I advise them to always double-check contact details, verify through official channels, and never transfer funds without confirming directly with their solicitor. Vigilance and skepticism are key. Awareness and caution are the best defenses against these scams. Always question unexpected communications and verify before acting—better safe than sorry!
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
Our conveyancing system is so archaic, it seems most transactions take just about the same time it took during the Victorian age. However, with potential losses now reaching £47,000 per incident, the vulnerability of digital systems and the increase in remote transactions have made it easier for fraudsters to intercept and divert large sums of money. Enhanced cybersecurity measures, consumer education, and stricter regulatory oversight are crucial to counter these threats. Technologies like blockchain could provide secure transaction records, while industry-wide collaboration can help track and mitigate fraud. By combining technology, education, and regulation, the industry can safeguard against these sophisticated schemes. It's essential for all stakeholders, including conveyancers, regulators, and consumers, to work together to create a secure environment for buying and selling properties.