Cybercrime: protecting your money
Cybercrime on the rise
Cybercrime is on the rise. UK Finance’s Annual Fraud Report highlights that over £450 million was stolen in Authorised Push Payment fraud in 2023. This type of fraud occurs when a scammer convinces you to send your money to them under false pretences. At the same time research published by Visa revealed that 1 in 3 consumers have fallen victim to APP fraud and 53% of consumers believe it is getting increasingly difficult to spot the signs of a scam.
As home buyers find themselves increasingly targeted by scammers, our Head of Property Mark Laird shares his top tips for keeping your deposit safe from scammers.
1. Verify and save your solicitors’ client account details
Most solicitors will request payment of money on account to cover the cost of searches and other outgoings. This payment will be sent to the same bank account that you will need to transfer your deposit funds to later in the process. As such, you should use this as an opportunity to verify your solicitor’s sort code and account number with your bank before saving the details as a payee on your online banking facility. The correct details will then be saved on your banking app ready for when you need to transfer deposit funds.
2. Stay alert and check emails carefully
Scammers often impersonate real companies in a type of scam known as phishing. A scammer will email you pretending to be your solicitor and asking you to send funds them. There are often several warning signs that the email is not genuine. The email address from which the email is sent may look similar to your solicitor’s address but will often be missing a letter. If the full address is not showing on the email, hover your mouse icon over the name of the sender to reveal the full address from which the email was sent.
Phishing emails will often contain poor grammar and spelling mistakes.
Your solicitor will keep you updated as to the progress of your purchase and the next steps. You will not normally be asked to transfer your deposit funds until a late stage in the process and your solicitor is unlikely to email out of the blue requesting you transfer funds to them.
3. Save your solicitors’ number on your phone
If you are targeted by a scammer by email, they will often include fake contact numbers for you to call and verify the authenticity of the fraudulent email. These contact details will divert your call to the scammer allowing them to reassure you that their request is genuine.
When you instruct a solicitor to act on your behalf in connection with a house purchase they will provide you with name of the lawyer who will deal with your purchase and their contact details. You should save your lawyer’s contract details in your phone. If you receive an email from your solicitor requesting you transfer funds, you should call your solicitor on the number saved to your phone to check the request is authentic.
4. Beware a change of bank details
Solicitors are heavily regulated and must follow strict rules to keep client money safe. Client money must be kept separate from the solicitors’ own funds in an account known as a Client Account. The Client Account will be opened in the name of the firm and will not be in an individual’s name.
Most firms will only have one Client Account and are very unlikely to change accounts throughout your purchase. In the rare event of a solicitor changing bank accounts it is extremely unlikely they would contact you by email to inform you of the change.
Any email from your solicitor suggesting they have changed bank accounts should be regarded as suspicious and should not be actioned.
5. Contact your bank immediately
If you think you may have been the victim of an Authorised Push Payment fraud you must contact your bank immediately. Acting quickly may enable your bank to stop the transfer from being made or recover your money from the scammer’s account.
If your bank is unable to stop the transfer or recover your money you may be entitled to a reimbursement from your bank. Many banks have signed up to a voluntary code under which they will reimburse customers who are not to blame for the scam.
Residential property & conveyancing team
At Morrish Solicitors each of our specialist property lawyers has decades of experience in assisting with purchases of residential property and is ready to assist you in buying or selling your home. To enquire about our residential property and conveyancing services please call us on 033 3344 9600 or simply email [email protected] with your request.
Author: Mark Laird, property.
