Cybercrime has become a huge problem in recent years. Stephen Ward, Head of Strategy and External Relation at the Council for Licensed Conveyancers, looks at the problem and explains how you can avoid conveyancing fraud.
As cybercrime continues to rise worldwide, homebuyers are increasingly becoming prime targets for online fraudsters. Property transactions involve substantial sums of money, making them attractive opportunities for criminals looking to intercept payments and deceive individuals into transferring funds. According to UK Finance, UK consumers lost an astonishing £1.17bn to fraud across various types last year
Why is conveyancing a target?
Property transactions are particularly vulnerable to cybercrime due to their high value and structured timelines. Most homebuyers transfer large sums of money at specific stages, particularly toward the final completion phase. One of the most prevalent scams is the so-called “Friday afternoon fraud”. Since most property completions take place on Fridays, fraudsters exploit the rush and urgency of conveyancers and buyers trying to finalise transactions before the weekend.
Scammers often gain access to email accounts or create fraudulent email addresses with subtle alterations, such as an extra letter or a slightly different domain name. They then send fake payment instructions posing as the conveyancer, directing funds to an alternative account. Once the buyer transfers the money, it is almost impossible to recover. As these payments are authorised by the buyer, banks are not always liable, leaving victims devastated, financially strained, and sometimes unable to proceed with their property purchase.
The role of the Council for Licensed Conveyancers (CLC)
The Council for Licensed Conveyancers (CLC) plays a critical role in helping its regulated firms and their clients safeguard against cybercrime. CLC-regulated conveyancers must implement stringent procedures to protect clients’ funds and personal data. These measures include secure handling of sensitive information and adherence to high standards of data protection.
A key security feature is the CLC’s unique secure badge, which appears on the websites of regulated firms. This badge helps homebuyers verify that they are dealing with a legitimate conveyancer. Additionally, the CLC requires firms to enforce strong cybersecurity protocols, such as encrypted email communication, secure channels for sensitive transactions, and ongoing staff training on fraud prevention. Regular audits ensure compliance with these security measures, reinforcing the protection of homebuyers’ funds and data.
The CLC advises homebuyers to stay vigilant and always verify bank details before transferring any funds. We would always encourage buyers to confirm payment instructions directly with their conveyancer via a trusted phone number, rather than relying on email correspondence alone.
Tips for first time buyers to avoid conveyancing fraud
To reduce the risk of cyber fraud, first time buyers should take proactive steps to protect themselves:
- Pause and assess before transferring money. Fraudsters create a sense of urgency to pressure victims into acting quickly. Take a moment to evaluate whether the request seems legitimate.
- Question unexpected payment requests. If you receive an email asking for payment that seems unusual or suspicious, contact your conveyancer directly by phone to verify the details.
- Verify website security. Ensure that you are engaging with genuine conveyancers by checking for security features such as the CLC secure badge on their official websites.
- Be cautious of remote access scams. Fraudsters may ask you to install software or provide one-time verification codes. Your bank or conveyancer will never request remote access to your device or sensitive information like passwords or PINs.
- Report concerns immediately. If you suspect you have been targeted by a scam, contact your bank right away and report the incident to Action Fraud.
As cybercriminals develop increasingly sophisticated tactics, the risk of conveyancing fraud continues to escalate. However, by staying informed and following best practices, first time buyers can take steps to protect their funds and navigate the property purchase process safely. Some conveyancers are now adopting enhanced security measures, such as Third Party Managed Accounts, to improve the safety of financial transactions. Homebuyers should ask their conveyancer what specific steps they take to ensure a secure transaction.
For more information or to find a CLC registered conveyancer in your area, please visit: clc-uk.org
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
