Now in its 11th year, Lawyer Checker, a Dye & Durham solution, has become a well-known, trusted brand within the conveyancing sector. Lawyer Checker continues to help firms achieve demonstrable due diligence in some of the most challenging times ever experienced. With a dramatic rise in cyber security scam alerts of almost a third in the past year, we spoke to Lindsay Petzer, Key Relationship Manager at Lawyer Checker, to find out what firms can do to mitigate risk and how Lawyer Checker is working to support them.
How has COVID increased the threat of fraud for conveyancers?
We monitor SRA scam alerts and over the past 12 months there has been a 27% increase overall compared with 2020. For conveyancing firms where fee earners are working from home or where hybrid working has been adopted, this has naturally introduced vulnerabilities. For example, it is not as easy for a conveyancer to discuss a matter with a colleague at the next desk, and cyber criminals have been quick to take advantage of the evolving situation.
More recently, staff absence due to isolation or sickness with the rise of Omicron is causing further challenges. With teams under pressure, it is easy to see how errors might creep in or corners may be cut at a time when firms need to be even more vigilant to the threat of cyber security.
What is the greatest area of risk?
Impersonation. Here, cyber criminals either take on the identity of an individual at another law firm or impersonate the whole firm. This is the greatest risk for conveyancers transferring significant transaction funds between organisations. Analysis of the SRA’s 2021 issued scam alerts has shown 91% of all alerts related to some sort of impersonation.
There are several ways that these highly organised and sophisticated fraudsters work. Email hacking, where a single digit of an email address is replaced so a firm believes they are communicating regarding bank details with a bona fide individual at another law firm, is increasingly common. 48% of all 2021 SRA alerts related to fraudulent email activity compared with 21% in 2020.
We have also seen a huge spike in web cloning. This is where the criminals purchase a web domain similar to that of the law firm they wish to impersonate and, before anyone has noticed, supply their bank details for a particular transaction and become the recipients of the transaction funds.
How can conveyancers mitigate the risk?
It is essential that the correct checks are made to verify bank account details on every single conveyancing transaction as a blanket policy. As well as proving due diligence, this mitigates the risk for both clients’ funds and the reputation of the law firm.
Lawyer Checker validates the destination details of the recipient bank account of the conveyancer receiving funds for every property transaction quickly and easily. It is a cost effective, secure web-based solution that can be accessed from any location 24/7 at the click of a mouse, supplying an audit trail for law firms as well as ensuring due diligence by adhering to the SRA Code of Conduct for Solicitors (SCCS) 4.2 – to safeguard client money and assets.
Proven over more than 10 years, Lawyer Checker’s unique algorithm checks details against ten different databases in real time. It checks SRA scam alerts and safeguards transactions against human error and typos while also providing the most up to date information.
What else can go wrong?
Often, we come across firms working from a “safe list”. However, criminals can hack into laptops and amend spreadsheets, replacing “safe” account details with their own.
Safe lists can also become out of date very quickly. We often hear legal professionals say: “We know that firm really well and regularly transact with them, so we do not need to verify their details, they are in the same building as us.” However, this does raise the question, how well do you know that firm? We have come across incidences where funds were transferred but there had been intervention from the regulator and the firm receiving the funds had suddenly been closed.
With conveyancers under continued pressure, human error can also occur. Upon verification, we have seen the bank details of an entirely different firm accidentally being supplied.
Lawyer Checker not only validates the bank account of the recipient firm, but we also check for human error. Included in the Lawyer Checker report are two searches: one which is usually completed at the start of the conveyancing process, plus a further check just before the funds are transferred, uniquely ensuring there have been no changes during the conveyance. This is essential with transaction times now taking longer and ensures the search is fully updated, making it easy and cost effective to mitigate risk of fraud during the transaction.
How is Lawyer Checker supporting firms?
As well as providing our Lawyer Checker verification solution, we work in partnership with firms to help them mitigate risk. As part of my role, I work closely with direct clients to monitor usage. This means we can identify if there are any gaps where the recommended blanket policy of all transactions being verified by Lawyer Checker is not being adhered to. This may be because staff are mistakenly working from a safe list, using it ad hoc, or a new staff member is unsure how to use the solution. Then we can provide extra training to ensure full due diligence is completed across the firm on every matter.
At Lawyer Checker we have a team of 28, many of whom are experts in cyber security. We also run regular webinars to discuss best practice and the latest updates on threats. Follow us on LinkedIn for information on our forthcoming webinars.
What is the one piece of advice you would offer conveyancers to mitigate risk?
The risk of cyber fraud for conveyancers has increased dramatically because criminals recognise the opportunity to intercept the significant funds involved in a property transaction. They have taken advantage of the vulnerabilities created by remote working and staff absence. Therefore, using Lawyer Checker to verify the account details of every transaction as a blanket policy will mitigate risk and prove due diligence so conveyancers can be as certain as possible that the correct recipient will receive funds. In this way, Lawyer Checker can help protect clients and the law firm for every matter.
For further information, please see: www.lawyerchecker.co.uk.
This article was submitted to be published by Lawyer Checker as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
