Buying a home is one of the biggest financial decisions you will ever make. It is exciting, but it can also be stressful and complicated. Unfortunately, criminals know this too. They are constantly looking for ways to trick you into handing over your money during the property buying process. One of the biggest threats right now is called conveyancing fraud.
In this article, you will learn what conveyancing fraud is, how it happens, who is at risk, and most importantly, how you can protect yourself from falling victim to it. Understanding this type of fraud is crucial if you want to keep your money safe while buying a property.
What Exactly is Conveyancing Fraud?
Conveyancing fraud is a scam that targets people buying or selling property. In simple terms, fraudsters try to trick you into sending your house deposit or final payment to a bank account they control, instead of your solicitor’s account.
Imagine you are ready to complete your home purchase. You receive an email that looks like it comes from your solicitor. The email gives you details for the bank account where you should send the money. However, this account actually belongs to criminals. If you transfer money to this account, it is gone — and recovering it can be very difficult.
This type of fraud is also called payment diversion fraud or property purchase fraud, but all refer to similar scams where criminals intercept or spoof communication to steal your money.
How Does Conveyancing Fraud Happen?
Conveyancing fraud has become more sophisticated in recent years. Fraudsters are clever and use technology to trick you. Here’s how it often works:
- Hacking or Spoofing Emails: Fraudsters hack into email accounts of solicitors, conveyancers, or property buyers. Sometimes, they don’t hack the email but create a fake email address that looks very similar to the solicitor’s real email. For example, they might change one letter or use a different domain that looks legitimate at first glance.
- Monitoring the Transaction: Once fraudsters have access to emails or are watching the conversation, they learn the timing of the property transaction. They wait for the moment when payment is due — usually at the exchange of contracts or completion.
- Sending Fake Payment Instructions: At the right moment, the fraudsters send you an email that appears genuine, with logos, signatures, and all the right information. They give you bank details for payment, but these are their own accounts.
- You Transfer the Money: Believing the email is from your solicitor, you transfer the money to the fraudster’s account. Once the money is transferred, it is very hard to get it back because the fraudsters quickly move or withdraw it.
Who is Most at Risk?
Conveyancing fraud can happen to anyone involved in buying or selling property, but some people are at greater risk:
- First-Time Buyers: If you are buying a home for the first time, you might not be familiar with how conveyancing works. This lack of experience can make you more vulnerable to scams.
- People Buying High-Value Properties: The bigger the money involved, the more attractive a target you become to criminals.
- Solicitors and Conveyancing Firms: Fraudsters may also target law firms, hoping to intercept emails between the firm and the buyer or seller.
- Small and Medium Businesses: In cases where property is bought through businesses, fraudsters might target the finance or accounts departments to divert payments.
Warning Signs You Should Look Out For
It is not always easy to spot conveyancing fraud, but some warning signs can help protect you:
- Unexpected Changes to Payment Details: If you receive an email telling you the solicitor’s bank details have changed, be very suspicious. Legitimate firms rarely change bank details mid-transaction.
- Pressure to Transfer Money Quickly: Fraudsters often try to create a sense of urgency so you don’t have time to check. Your solicitor should never pressure you to send money without verification.
- Emails with Slight Differences: Watch out for email addresses that look similar but are not quite right. Also, check for spelling or grammatical errors.
- Unusual Requests: If an email asks you to send money to an unfamiliar account or through unusual payment methods, ask questions.
How Can You Protect Yourself from Conveyancing Fraud?
The good news is there are simple steps you can take to protect yourself:
1. Verify Payment Details in Person or By Phone
The safest way to get your solicitor’s bank details is directly from them in person. If this is not possible, call your solicitor using a phone number you trust — not a number from the suspicious email. Verify the bank account details verbally before sending any money.
2. Don’t Trust Emails Alone
Email accounts can be hacked or intercepted. Never rely solely on an email for payment instructions, especially if it involves large sums of money.
3. Use Multiple Methods to Verify
If you receive payment details by email, confirm them using a second method like a phone call, video call, or a letter from your solicitor. Use contact details you find independently (for example, on your solicitor’s official website).
4. Be Careful of Email Address Changes
If you receive an email about changes in payment details, confirm with your solicitor directly before making any payments. Most firms rarely change their bank details during a transaction.
5. Secure Your Email and Devices
Make sure your email and devices are safe:
- Use strong, unique passwords.
- Enable two-factor authentication.
- Install and update antivirus software.
- Avoid using public Wi-Fi for sensitive transactions.
- Log out of your email on shared or public computers.
6. Avoid Public Announcements
Try not to announce your property purchase on social media until after completion. Fraudsters monitor social media to find targets who are about to transfer large sums of money.
7. Don’t Act Under Pressure
If someone urges you to transfer money quickly, pause and verify. Genuine solicitors understand the importance of security and won’t rush you.
8. Send a Small Test Payment First
Once you think you have verified the correct bank details, send a small test payment. Confirm with your solicitor that they received it before sending the full amount.
What Should You Do If You Suspect You Are a Victim?
If you think you have been targeted by conveyancing fraud or have already transferred money to a fraudster, act quickly:
- Contact Your Bank Immediately: Tell your bank what happened and ask them to try to freeze the payment or recover the funds. The sooner you do this, the better the chance of saving your money.
- Report to Action Fraud: In the UK, you can report the fraud online at Action Fraud or by calling 0300 123 2040.
- Inform Your Solicitor or Conveyancer: Let your legal representative know immediately so they can warn other clients and help prevent further fraud.
Other Related Frauds to Be Aware Of
Payment Diversion Fraud
This happens when criminals impersonate people within businesses or organisations. They change invoices or payment details to divert money to their accounts. It can affect anyone, but small and medium businesses are often targeted.
Business Email Compromise (BEC)
This is a type of phishing attack where criminals send highly convincing emails to senior staff or budget holders, asking for unusual payments or confidential information. These emails may contain disguised viruses or malicious links.
BEC attacks are targeted and personalised, making them harder to spot than general phishing emails. They can affect organisations of all sizes, including charities and government bodies.
Final Thoughts
Conveyancing fraud is a serious threat, but it can be avoided with the right knowledge and caution. Remember, criminals rely on rushing you or catching you off guard. By taking your time, verifying information carefully, and staying alert to warning signs, you can keep your money safe.
If you are buying a property, always think twice before transferring money. Make sure you know who you are sending it to, and if in doubt, check again. Your solicitor is there to help you, and they want to make sure your property purchase goes smoothly and securely.
Buying a home is a big step, and protecting yourself from fraud is an important part of the process. Stay informed, be cautious, and enjoy the excitement of moving into your new home with confidence.
