Why are homebuyers at increasing risk of cybercrime and what is being done to protect them from online scammers’ sophisticated methods? Stephen Ward has the lowdown
As cybercrime continues to rise globally, homebuyers are increasingly becoming targets for online scammers.
With large sums of money changing hands during property transactions, fraudsters see opportunities to intercept payments and trick individuals into transferring funds.
According to UK Finance, UK consumers lost a staggering £1.17 billion across all fraud types last year.
Why is homebuying and conveyancing a target?
Property transactions are prime targets for cybercriminals due to their size and predictable nature.
Most homebuyers need to transfer substantial amounts of money at precise points in the process—usually during the final stages.
One of the more notorious methods scammers use is the so-called ‘Friday afternoon fraud’. As the majority of property sales are completed on Fridays, fraudsters know that conveyancers and buyers alike are under pressure to complete transactions before the weekend.
Typically, scammers hack into email accounts or imitate genuine email addresses, inserting subtle changes like an extra letter or altering the domain name.
They then send fake instructions for payment, appearing to come from the conveyancer, with revised bank details. Once the buyer transfers the money into the account, it’s too late.
These losses are often impossible to recover because the payment is authorised by the buyer, banks are not always liable for the loss, leaving victims devastated, unable to buy their new home and often out of pocket.
What is being done to protect homebuyers?
The Council for Licensed Conveyancers (CLC) plays an important role in helping the firms it regulates, and their clients, protect themselves from cybercrime.
CLC-regulated conveyancers are required to have robust procedures in place to safeguard their clients’ money and personal data.
These include stringent guidelines on the secure handling of sensitive information, ensuring that firms maintain the highest standards of data protection.
One key measure is the use of the CLC’s unique secure badge on the website of regulated firms. This badge serves as an authentication tool, allowing consumers to verify that they are dealing with legitimate conveyancers.
In addition, the CLC requires firms to implement robust cybersecurity protocols, such as secure communication channels, encrypted email systems, and regular staff training on fraud prevention.
The CLC also conducts periodic audits to ensure compliance with these security measures, further reinforcing the safety of homebuyers’ funds and personal data.
We advise homebuyers on the importance of vigilance and double-checking bank details before transferring any funds.
Homebuyers are encouraged to confirm payment instructions directly with their conveyancer over the phone, using a number they know to be correct, rather than relying on email communications alone.
Tips for homebuyers to avoid conveyancing fraud
Given the risks of cybercrime, it’s important for homebuyers to remain vigilant and take simple, proactive steps to protect themselves:
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Stop and think before transferring money
Take a moment to consider whether the request seems genuine. Fraudsters often use urgency and pressure tactics to push victims into acting quickly.
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Challenge unexpected payment requests
If you receive an unexpected or suspicious email asking for money, contact your conveyancer directly by phone to verify the details.
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Check the security of websites
Ensure you’re visiting genuine websites by looking for security features such as the CLC’s secure badge on regulated conveyancers’ websites.
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Beware of remote access scams
Fraudsters may ask you to install software or share one-time verification codes. Your bank or conveyancer will never ask for remote access to your device or sensitive information like passwords or PINs.
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Report any concerns immediately
If you believe you’ve fallen victim to a scam, contact your bank immediately and report the incident to Action Fraud.
As cybercriminals become more sophisticated, the threat of conveyancing fraud continues to grow. But with increased awareness and by following best practices, homebuyers can take steps to protect their funds and safely navigate the property purchase process.
The CLC’s proactive stance on digital security offers additional reassurance for clients of its regulated firms, ensuring that both conveyancers and their clients are better equipped to guard against fraudsters.
Note also that some conveyancers are beginning to use tools such as Third Party Managed Accounts to improve the security of money transfers.
You should ask your conveyancer what steps they take to ensure that your transaction is as secure as possible.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
