Property prices soar – and fraudsters know it, too

Property prices soar – and fraudsters know it, too

Property prices soar above £350k – and fraudsters know it, too

For most people, buying a property is likely to be the largest transaction they ever make. In March this year, according to Rightmove’s House Price Index, the average property value broke the £350k mark for the first time, with the average house price now reported to be £354,564. The Land Registry also reported an 11% rise in house prices year-on-year in February.

And it’s no coincidence that as house-prices have rocketed, so too has media exposure around property fraud. In recent months, there have been several such incidents including the shocking case in October when a Luton man’s home was sold without his knowledge. More recently, the ITV thriller “Our House” focused on the fallout of the lead characters home also being sold without her knowledge.

Illicitly intercepting conveyancing funds is a prosperous target

Intercepting home moving funds is a prosperous target for fraudsters, and they’ll try a variety of methods to make this a reality. Most generally, their methods involve impersonation of a real firm – in our analysis of the SRA’s 2021 issued scam alerts, 91% of all alerts related to some sort of impersonation of a real firm or legal professional. The Solicitor’s Regulation Authority (SRA) states in their cyber security advice: “As our reliance on technology in the legal sector increases, so too does the risk that firms will be exposed to cybercrime. Firms provide a convenient doorway for fraudsters to access confidential information and client money and increasing numbers have been the focus of targeted cyberattacks”.

Email modification fraud was reported to be the most common form of cyber attack reported by firms to the SRA, accounting for 68% in their Risk Outlook. This method was behind the case of a homebuyer being scammed into handing over £640,000 to criminals after emails to their solicitor were intercepted.

Conveyancers are under pressure to demonstrate due diligence to both their insurers and clients against such threats, with the SRA stating “Firms that hold client money need to have appropriate systems and controls to protect that money and to comply with the SRA Accounts Rules. They must be able to monitor how well these systems are working. Steps that they can take include… considering using systems such as Lawyer Checker to verify that what is described as the contact or bank information for a third-party law firm is genuine.”

How conveyancers can demonstrate a commitment to fraud prevention

Dye & Durham’s Lawyer Checker solution has been mitigating risk against fraudulent conveyancing interception for over a decade. In the first six months of 2021, 1,300 notices were issued to conveyancers who incorporated the Lawyer Checker solution into their conveyancing. 10% of these notices related to SRA scam alerts, 13% to an SRA decision and 38% to an incorrect name – all red flags that the client needed to consider before transferring funds to their fellow conveyancer, to effectively safeguard against criminal interception.

Lawyer Checker’s unique algorithm will check the searched against conveyancer’s details with a real-time database resulting in a “frequent”, “infrequent” or “unknown” outcome. Lawyer Checker checks SRA scam alerts and helps safeguard transactions against human error and typos while also providing the most up to date information available.  Included in a 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.

The Lawyer Checker reports are sent to the client as PDF which can easily be saved to file to demonstrate due diligence and best practice to the conveyancer’s regulator and insurer whilst also offering peace of mind to the client.

Award-winning fraud prevention

Dye & Durham’s Lawyer Checker solution was recently awarded “Risk & Compliance Champion of the Year” at the British Conveyancing Awards.

Join our webinar

Dye & Durham Insight & Data, Redbrick Solutions & CDS present: “Conveyancing Fraud Analysis – How do I protect my firm?”

Join us for a FREE webinar on Tuesday 12th July 2022 at 11am, as we explore:

  • Fraud analysis – market patterns, trends, risk indicators that we add to Lawyer Checker checks
  • Case studies of the risks associated with conveyancing fund transfers
  • Overview of Lawyer Checker
  • Understanding the results
  • Advantages of using Lawyer Checker
  • Best Practice

Find out more and register here: https://register.gotowebinar.com/register/262308712115573004

This article was submitted to be published by Redbrick Solutions 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.

Redbrick Solutions

http://www.redbricksolutions.co.uk/

Redbrick Solutions: Easy to use case management, delivered by experts, for successful law firms

Our revolutionary legal case management solution Redbrick Practice Management integrates case management, document management, reporting, workflow, task and diary functions, compliance and outlook integration all via a user friendly interface with best practice built in. We assist users at every step of the way from the initial estimate through to invoicing the client and collecting monies, producing letters, legal forms, bills and statements in seconds and managing risk via a transparent to-do list visible to case owners with all the third party links you’ll need.

Our secure two-way client portal enables you to share documents and sensitive information safely and effortlessly with your client, whilst our built in reporting module will deliver business critical information automatically to key decision makers and can be customised to suit your requirements.  Our clients range from Top 200 firms to regional multi partner firms, but wherever our products are used, the results are reassuringly the same: we help you handle your matters in as efficient and cost effective a manner as possible.

Redbrick Solutions are delighted to have been awarded ‘Leading Expert In Tech 2017’ by Softec Int, and to still be the only legal case management provider to have achieved the Legal Eye Standard. We work closely with our clients, through user focus groups, to ensure we build solutions that make a real difference to you, the lawyer.

Redbrick Business Intelligence, our back office solution, covers the full spectrum of financial management requirements including; Client and Business Accounting, Billing and Productivity Management and Financial and Analytical Reporting.  The two solutions can be used together to provide one powerful, seamlessly integrated solution delivering everything required by the modern law firm.

Our best in class solutions and service led ethos have resulted in us being the only software supplier to have been selected by the Society of Licensed Conveyancers (SLC) as preferred supplier to its members.  We are also members of the Legal Software Suppliers Association (LSSA).

For further details on any of our products or services please see www.redbricksolutions.co.uk or contact Jo Hodges on 0845 166 2629 or [email protected]

 

Leave a Reply

Your email address will not be published.

X