Beware of Conveyancing Scams: How Fraudsters Target Home Buyers - Cyber and Fraud Centre

Buying a home is an exciting milestone, but it’s also a complex process that involves significant financial transactions. Unfortunately, fraudsters have found a way to exploit this process through conveyancing scams, which are on the rise in the UK.

What are Conveyancing Scams?

Conveyancing scams typically involve fraudsters hacking into the email accounts of home buyers or solicitors involved in a property transaction. The scammers monitor the email exchanges and wait for the opportune moment to strike – usually when the buyer is about to transfer a large sum of money, such as the deposit or final payment.

The scammers then send fake payment instructions to the buyer, often spoofing the email addresses and branding of the legitimate solicitor or conveyancing firm. These instructions direct the buyer to transfer funds to a bank account controlled by the criminals.

In some cases, the scammers may even call the victim and impersonate someone from the solicitor’s office, reinforcing the urgency of making the payment.

The Scale of the Problem

According to Lloyds Bank, conveyancing scams have increased by 29% in the second half of 2023. While the overall number of cases is lower than other types of fraud, the average amount stolen is staggering – around £47,000 per victim. The bank has even seen cases where victims have lost more than £250,000.

First-time buyers are particularly vulnerable, as they may be less familiar with the home-buying process and more easily deceived by the scammers’ tactics.

Tactics Used by Scammers

Fraudsters rely on a variety of tactics to make their scams appear legitimate:

Email Hacking: By hacking into the email accounts of home buyers or solicitors, scammers gain access to sensitive information and can monitor the entire transaction.
Spoofing: Scammers create fake email addresses that closely resemble those of the legitimate parties involved, making it difficult to spot the deception.
Impersonation: In some cases, scammers may even call the victim and impersonate someone from the solicitor’s office to add a sense of urgency and legitimacy to their requests.
Exploiting Urgency: Fraudsters prey on the time-sensitive nature of property transactions, encouraging victims to act quickly and without verifying the payment details.

Protecting Yourself from Conveyancing Scams

While conveyancing scams can be sophisticated, there are steps you can take to protect yourself:

Secure Your Email: Use strong, unique passwords for your email accounts and enable two-factor authentication to prevent unauthorised access.
Verify Payment Instructions: Always verify payment instructions directly with your solicitor or conveyancing firm, preferably in person or via a trusted phone number. Never rely solely on email instructions.
Be Vigilant: Watch for red flags, such as requests to make payments to unfamiliar accounts or instructions to split payments into multiple transactions.

What to Do If You’ve Been a Victim

If you suspect that you’ve fallen victim to a conveyancing scam, it’s crucial to act quickly:

Contact Your Bank: Notify your bank immediately and ask them to recall or reverse the transaction if possible.
Report the Scam: Report the incident to Police Scotland by calling 101.
Change Your Passwords: Change the passwords for all your email accounts and other online accounts to prevent further unauthorised access and add additional security byu setting up 2-factor-authentication.
Monitor Your Accounts: Keep a close eye on your bank accounts and credit reports for any suspicious activity.

Conveyancing scams can have devastating financial and emotional consequences for victims. However, by being proactive and taking the proper precautions, you can significantly reduce your risk of falling prey to these fraudsters. Remain vigilant throughout the home-buying process, and don’t hesitate to verify every step with your solicitor or conveyancing firm through secure channels. Remember, a few extra minutes spent double-checking can save you from the heartache and financial loss caused by these scams. Staying informed and taking preventive measures is the key to ensuring a smooth and secure property transaction.

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