Beth Rudolf, director of delivery at The Conveyancing Association, examines the constant risks of fraud faced by conveyancers during the transaction process.
I was shocked to hear on Radio 4 the other day that a US administration official reportedly said about 50% of North Korea’s foreign-currency income comes from cyber-attacks (especially crypto heists and theft). When a substantial part of a country’s economy allegedly comes from cyber fraud that’s a huge wakeup call that this is not going to go away.
Certainly, for our sector fraud linked to property transactions remains a persistent threat, and a recent experience shared by a CA member was a timely reminder of how easily criminals can still insert themselves into live matters.
In this case, a fraudulent redemption statement was received by our member firm which was then shared with the client. They queried the redemption figure, which led to the firm reviewing the online presence of this lender – not a well-known one – that eventually led them to a fraudulent website.
The outcome could have been very different. The firm did the right thing by stopping the transaction, checking the detail and escalating concerns, and since then the genuine lender has been added to Lender Exchange, reducing the likelihood of a similar incident.
However, the episode underlines a wider point. Fraud does not always involve sophisticated system breaches or intercepted emails. Sometimes it relies on little more than time pressure, a routine action and a convincing digital presence.
Why property transactions continue to attract fraudsters
The property market remains an attractive hunting ground for criminals because of the sheer scale of money moving through the system and the number of parties involved in each transaction.
UK Finance forecasts suggest there will be more than 1.2 million property transactions in the year ahead, with gross lending reaching up to £300 billion. Of that, around £180 billion is expected to relate to house purchase, with remortgaging accounting for £77 billion and product transfers estimated at £261 billion.
With figures like these, it is no surprise that criminals continue to probe for weaknesses. Conveyancing firms are one part of a much wider chain that includes lenders, brokers, estate agents and technology providers, and fraudsters only need one gap in that chain to succeed. While many attempted frauds are crude, they can still be effective if they arrive at the right moment and appear just credible enough to pass an initial check.
Simple routes can still lead to serious risk
What is striking about the recent case is how straightforward the route was. A web search for a lesser-known lender led to a fake site that had clearly been designed to capture interest. No systems were compromised and no emails were intercepted. Instead, the criminals relied on the likelihood that someone, somewhere in the process would need to look the lender up. This reinforces the importance of being cautious about open web searches for sensitive information and of relying, wherever possible, on trusted platforms and verified avenues. It also shows why firms should not assume that only complex or highly technical attacks deserve attention.
The continuing role of clear and consistent controls
The CA has long stressed that strong controls, applied consistently, remain the most effective defence against fraud. Our Cyberfraud and Fraud Protocol sets out practical measures that firms can adopt to reduce risk across the life of a transaction, from instruction through to completion.
These include early verification of lender and firm bank details, treating any change to payment instructions as high risk, using call backs on known numbers and maintaining clear audit trails with appropriate sign-off.
These are not new messages, but they remain relevant because the fundamentals of fraud have not changed. Criminals still rely on urgency, familiarity and assumption, and clear process helps remove all three.
Focusing on the point where money moves
One area that deserves particular attention is the final stage of a transaction, when funds are about to be released. This is often where pressure is highest and time is shortest, which makes it an obvious target for last-minute interference.
Simple steps can make a meaningful difference, such as enforcing verified call backs for any late changes to payee details, introducing short pause periods before releasing funds following amendments, and ensuring late changes are escalated appropriately. These measures may add a small amount of friction, but they also provide a vital opportunity to catch issues before money leaves an account.
Supporting people to challenge and pause
Technology and systems play an important role, but people remain the first line of defence. Regular training is essential, not just as an annual exercise but as an ongoing process that reflects how fraud tactics evolve. Short updates, realistic phishing tests and open discussion of near misses can all help to keep awareness high.
Just as important is culture. Staff need to feel supported when they stop a transaction or raise a concern, and firms should reinforce the message that pausing to check is always the right decision if something does not feel right.
Reducing risk later in a transaction often starts with doing the basics well at the beginning. Using approved digital identity providers that comply with UK trust standards, alongside secure source of funds checks through open banking, can strengthen assurance from day one while also reducing duplication. These steps not only improve confidence within individual firms but also support better information sharing across the wider transaction chain.
AI, opportunity and risk
There is growing discussion about the role AI could play in improving efficiency within conveyancing, and many of those opportunities are real. However, it would be unrealistic to assume that criminals are not also exploring how the same tools could support their activity, whether by scanning public data, copying professional language or creating convincing cloned sites more quickly. This makes basic vigilance even more important, particularly around where information is sourced and how it is verified.
Fraud will continue to be part of the conveyancing landscape, and property transactions will remain an attractive target. The response does not need to be alarmist, but it does need to be consistent, shared and grounded in everyday practice.
By following established protocols, tightening controls where money moves, and maintaining a culture that supports challenge and care, firms can reduce risk and protect both themselves and their clients.
About the author
Beth Rudolf is director of delivery at The Conveyancing Association. After starting working life as an estate agent, she became a licensed conveyancer and now works with the Conveyancing Association to improve the home-moving process for the consumer.
