Homeowners Beware – Conveyancing Payment Scams

Lloyds Banking Group has raised awareness of the latest conveyancing payment scams.

With conveyancing scams increasing by 29% last year, one of the most common causes for concern is fraudsters hacking into emails to intercept property deposit payments.

Around 45% of victims are aged 39 or under, with first-time buyers at particular risk due to inexperience of the home buying payment process.

Protect Yourselves

Homebuyers are being targeted by criminals hacking emails to exploit the conveyancing process, with increasing numbers tricked into sending their property deposit to fraudsters.

Analysis by Lloyds Bank of conveyancing scam reports made by its own customers found they rose by more than a quarter (29%) in the second half of last year. 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 per victim. The bank has also seen several cases where victims have lost more than £250,000.

How a conveyancing scam happens

• Conveyancing scams typically start when either the solicitor or homebuyer has their email account hacked.

• Fraudsters will monitor email exchanges related to the property purchase, waiting for the opportune moment to strike and send false payment details.

• Sometimes the fraudster can send emails directly from the solicitor’s email account, but usually they will create a spoof email address which looks very similar.

• Because they have seen the genuine chain, the emails they send will look extremely convincing, using the same names, logos and signatures.

• In some cases, the fraudsters may call the victim and impersonate someone working at the solicitors, to reinforce the urgency of making the payment.

• The homebuyer is then tricked into sending their money to a bank account controlled by the criminals.

Liz Ziegler, Fraud Prevention Director, Lloyds Bank, said: “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.

“Fraudsters prey on weaknesses in email security and exploit a conveyancing process that most people may only experience a handful of times in their lives. It’s vital that solicitors also grasp the importance of educating their clients on the risk of this type of scam and make a point of sharing payment details in person at the start of the homebuying process.”

How to protect yourself from conveyancing scams

• Verify payment instructions – confirm payment instructions with your solicitor in person, or over the phone using a phone number you trust, not from an email or invoice. You should do this at the start of the homebuying process.

• Be wary of changes – solicitors very rarely change their bank account details. Be extremely wary of any sudden changes and remember that email is not a secure communication channel for receiving payment instructions.

• Secure your email – use strong, unique passwords and enable two-factor authentication on all your email accounts. Always sign out of accounts if using shared devices and avoid using public or unprotected Wi-Fi connections.

• Avoid bragging online – don’t shout about your property purchase on social media, at least until you’ve got the keys in your hand. Criminals monitor posts and will target the email accounts of those who look to be in the process of buying a new home.

• Don’t be pressurised – fraudsters will try to put pressure on you to make a payment at short notice or risk the deal falling through. Never send money until you have picked up the phone and spoken to your solicitor on a trusted number.

• Pay attention to warnings – your bank might provide a warning about the payment, especially if the name of the account you’ve entered doesn’t exactly match the details of the receiving account. Always follow the advice provided as part of any warning.

 

[Figures based on analysis of relevant scams reported by Lloyds Banking Group customers, including customers of Lloyds Bank, Halifax and Bank of Scotland between January 2023 and April 2024. 29% increase based on the number of cases reported in the period July-December 2023 compared with January-June 2023.]

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