Having celebrated a landmark achievement of 20 years in the conveyancing business, Newport-based Convey Law reflects on transacting £50bn in home moves with head of finance and administration Abby Bater. Abby shares her thoughts on the trials and tribulations of keeping clients and teams safe in today’s fraught conveyancing world, and managing the finances of a busy legal practice.
How big is the job – how many transactions do you deal with each year?
We currently complete approximately 8,500 residential property transactions per annum. Convey Law celebrated its 20th anniversary in December 2024, and we calculated the total value of all transactions undertaken in the last 20 years at over £50 billion. Every penny has been accounted for – save for 27 pence, which we couldn’t find as a result of a computer software change in 2006!
All client funds were present and correct, however, and we achieved an exemplary result in our last CLC Audit, as we have with every accounting audit over the last 20 years.
How do you combat error within your finance team with so many transactions?
With a series of mandatory checks and balances and dual authorisation, cashiers checking each other’s work is critical. Our Convey365 accounting system and process links to our bank account to tell us where funds are coming from and allocates them to a client file.
Our IT system also allows for internal completion day requests and confirms when all checklists are clear, so we can send funds without the actual client file or a plethora of emails between us and the conveyancer. My accounts team also undertake final conveyancing security checks on OS1s, as well as deed execution on completion to avoid future problems.
How do you combat fraud?
Our clients are very well informed at the start of their transaction about what to do and what not to do. Our cyber security video is a mandatory part of our client online onboarding process. Clients are asked to verify their bank details and source of funds information through our sophisticated Open Banking and biometric identity IT processes. Clients are told how we will be manging their transaction financially and not to send funds to anyone else without contacting us first through pre agreed lines of communication.
What is the biggest risk for your clients?
The biggest risk to clients is themselves, unfortunately. Our clients are warned not to publicise their transactions on social media and to make themselves a target for cyber criminals. Whilst our Convey365 IT systems are safe, well protected and Cyber Essentials Plus accredited, unfortunately the IT systems used by our clients are not always as robust. Most cyber-attacks come from the clients’ IT systems being compromised, with cyber criminals accessing their emails and sending spoof emails pretending to be us and asking them to send funds to a bogus bank account. Regular all-client emails remind them of the dangers and to maintain vigilance.
Friday afternoon fraud – how do you combat it?
Organisation and teamwork is the key. Our conveyancers adopt the conveyancers’ code for completion wherever possible, with us sending funds to the conveyancer on the other side the day before completion, to be held to order. This allows for a smooth moving day experience for our clients, but also ensures that all security checks are undertaken well before the day of completion. We finish work at 4 o’clock on a Friday, so long as all funds have been safely transferred before this deadline, there’s no chance of us being compromised.
How can you make sure that funds are always sent to the right account?
Open Banking bank statement confirmation at the start of the transaction is foolproof, whereas PDF bank statements can be fabricated. CBAC searches to check that we are sending funds to the correct bank account are critical, as well as telephoning clients to confirm that funds have been sent to the correct account – this is good client service as well as cyber-crime safe. Any obscure changes to client bank details are always questioned and the team receive online IT cyber training every month. Remaining vigilant is critical.
What’s next in combating cyber-crime?
Open Banking is the key. Verifying, receiving, and sending funds to a confirmed Open Banking account is the absolute solution, coupled with Safe Harbour biometric client ID with passport three-way ID verification.
What are your thoughts on using a third-party client bank account?
I am sceptical as to how necessary and effective this will be. Conveyancers make money from client account bank interest and in charging clients for bank TT fees, which affects profits and also the overall fees charged to clients, so the reasons would need to be compelling for change. I am not sure that the responsibility for checking client ID and AML requirements would move from the conveyancer, so the reasons for moving to this system of operation are limited. Also, I know how difficult it is to coordinate payments from clients and third parties and to coordinate payments out quickly on the day of completion once received.
I am sure that with time IT solutions will be found, but I think that this is many years away – maybe never.
Abby Bater was speaking to Today’s Conveyancer
