Buying your home is one of life’s most exciting events. It’s likely to be the biggest financial commitment you ever make, and picking up your keys is one of the key milestones you’ll hit in your adult life.
So, at this memorable time, the last thing that you want is to fall victim to a sophisticated fraud.
Yet, new research from Lloyds has revealed that “conveyancing fraud” has risen sharply in the UK, with some victims losing more than £250,000.
Read on to find out more about how conveyancing fraud works and why there has been a sharp rise, alongside some tips to keep yourself safe.
Conveyancing scams work when a fraudster hacks your/your solicitor’s email
When you buy a home, you’ll appoint a conveyancer to undertake the legal work involved in a property transaction.
Conveyancing scams typically start when either you or your solicitor has their email account hacked. Criminals will monitor the email exchanges related to the property purchase and wait for the opportune moment to strike and send false payment details.
Often, the fraudster will create a spoof email address that looks very similar to your conveyancer’s email address. The emails they then send will look extremely convincing, using the same names, logos and signatures. They may also send you an invoice that looks completely genuine.
In some cases, a scammer may then even call you and impersonate someone working at the solicitors, to reinforce the urgency of making the payment.
You are then tricked into sending your money – often your house deposit – to a bank account controlled by the criminals.
Victims can lose significant sums
Lloyds Bank has revealed that reported conveyancing scams increased by 29% in 2023, with hacked emails allowing fraudsters to intercept property deposit payments.
While the overall number of cases is much lower than for other types of fraud, the average amount stolen was the highest, at around £47,000 for each victim. Lloyds says that it has also seen several cases where victims have lost more than £250,000.
Source: Lloyds
The bank also cautions younger house buyers to be aware of the practice. Around 45% of victims of conveyancing scams are aged 39 or under, meaning first-time buyers may be at particular risk from this type of scam as they have no previous experience of the homebuying process.
Liz Ziegler, fraud prevention director at Lloyds Bank, says: “Buying a new home is one of the most exciting moments many of us will ever experience. But it can also be incredibly stressful, given the amount of money involved, and the need to navigate a complex legal process.
“While the financial consequences of these scams are severe, the emotional toll can be even greater. The fraud often leads to the collapse of a property transaction, with a devastating long-term impact on those involved.”
Tips for staying safe from conveyancing fraud
The best way to avoid this type of pernicious fraud is to make sure you obtain the correct payment details from your conveyancer early on in the process.
Confirm the payment instructions with your solicitor in person, or over the phone on a number you trust, not from an invoice or from an email you receive.
You should also treat any request to change account details with suspicion. It is very unlikely that a solicitor would change their bank details during a transaction – especially by sending an email containing the new information.
If you do receive a request, always take your time and don’t feel pressured to act. Get in touch with your conveyancer first and make sure any request you receive is genuine, and don’t transfer any funds in response to a time-pressured demand.
In more general terms, it’s important to keep your personal email account secure by using strong passwords and two-factor authentication. Make it as hard as possible for someone to hijack your account.
Finally, try not to post about your purchase online before your transaction has been completed. Scammers will be looking out for potential victims, so don’t advertise you’re going through the house-buying process on social media.
Get in touch
If you’re buying a new home, we can help you to arrange the finance you need to complete your purchase.
To find out how we can help, please get in touch. Email [email protected] or call us on +44 (0) 20 3411 0079.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
