Conveyancing fraud has been on the rise, and it is now one of the most common occurrences in the world of cybercrimes. It is making a visible impact on the society and industry as everyday newspaper headlines are stating shocking cases of people getting swindled of their hard-earned money. Unaware house buyers lose tens of thousands of pounds. It is an issue that is mainly faced by first-time buyers as they are likely to be a lot less familiar with this issue.
Conveyancing is the legal procedure where the ownership of a property, building, or land is transferred from one person to another. Every sale or purchase of a property should undergo conveyancing. In this, the buyers need to hire the services of a third-party person or firm to make the whole buying or selling of property a legal process. Once the offer for the property is accepted, the agreements are drawn up, signed, and the money is transferred as a payment.
It is particularly an issue for first-time buyers because they would normally transfer a large sum of money to pay for the deposit, stamp duty, and other expenses.
What is conveyancing fraud?
Conveyancing fraud is also recognized as an APP scam (Authorised Push Payment). In this, a person is tricked into transferring the money from their bank to the account of an impostor or fraudster. In this, the fraudsters hack the email chains or an entirety of an email exchange between buyers and sellers, and their legal representatives and real estate agents.
The rise in the occurrence of conveyancing fraud depends on the fact that the internet has allowed so many people today to communicate with their conveyancing solicitor through email. Email communication offers a lot of advantages as it is convenient, fast, and allows you to easily interact with your lawyer anywhere in the country. However, the internet is not exactly a safe place to be, and using email communications allows the cybercriminals an opportunity to cheat you out of your money if you are not cautious.
The fraud begins when you receive an email that seems to be sent by your solicitor. The email tells you to transfer the deposit for the home you are planning to buy in a bank account whose details are mentioned in the email. However, the email is not sent by your solicitor, and it is fake. This email is sent by an imposter, and the bank account where you have to transfer the money belongs to the same imposter and not your solicitor.
The email seems to be sent by your solicitor because either the fraudster has hacked your solicitor’s email account or their email address is spoofed. In email spoofing, it will appear that email has come from your solicitor but that email account is controlled by the imposter.
Believing that email has been sent by your solicitor, if you transfer the money to the fraudster’s account, they will quickly move the money to a new account, most likely in an overseas account. It means you might lose your money for good and may not recover.
How To Avoid Conveyancing Fraud?
Here are a few tips that might be able to help you avoid conveyancing fraud:
1. Install antiviruses and security software on your system and keep them up-to-date
One of the easiest ways to avoid scammers is to install antivirus and firewall software on your devices. While this might not be able to completely stop the hacker’s attack, it can surely make their job harder. To block unauthorized access to your emails, you must keep your antivirus and firewall fully up-to-date. An up-to-date antivirus can help you prevent, discover, and eliminate malicious software. It will reduce the chances of your email account being hacked by outside threats.
2. Ensure the bank details are correct
Before transferring any money into any bank account, check the bank account details with your solicitor. If you have received the bank account details through email, then it is better to contact the solicitor directly and ask about the bank details. You can contact your solicitor by phone or meet them directly in their office.
3. Do not share your bank details using electronic means
If possible, try to avoid sending your bank account details through electronic means, such as an email. Instead of sending your bank account information through an email, let your solicitor know about your bank details by calling them on the phone or visiting their office. So that even if your or your solicitor’s account gets hacked, your bank details would still be safe, and the fraudsters will not be able to get their hands on it.
4. Move a small amount to solicitor’s account at first
Before transferring a large sum to the solicitor’s account, transfer a small amount first, and see if the solicitor has received it or not. You can call the solicitor to check with them. If they have received the amount in their bank account, it means that you can transfer the full amount. Thus, your money will go into a safe account and not to an imposter’s bank account.
5. Do not discuss your house purchasing plans on social media platforms
Social media makes it easier for fraudsters to find information about people. These days social media users share almost every part of their life on their social media page, such as going on vacation, eating at a restaurant, traveling, checking in at a hotel or other place, etc. if you share your plans of selling or buying a property on a social media platform, it could make you an easy target for conveyancing fraudsters. Do not discuss your house-buying or selling plans on social media until the funds have been transferred and the transaction has been completed.
6. Use Stronger Password
Create a stronger password for your accounts that nobody can guess. If you use words or numbers that are recognizable to others, such as your birthday or native place, etc. it can be easier for hackers to crack your password. So use a stronger password with letters, numbers, symbols, etc., something that you can remember. It will do you no good if you forget your password.
If you think you are a victim of a fraud that has been done against you, immediately contact your bank, conveyancer, and police, and proceed from there.
Staying alert to any concerns and keeping educated on any current scams is essential for anyone who uses the internet for business or monetary transactions.
From the outset, ensure that you choose a reputable regulated conveyancing solicitor who will safeguard your interests and walk you through the process reliably and thoroughly.
