Conveyancing scams on the rise

Homebuyers are being warned that fraudsters are targeting them by hacking emails during the conveyancing process.

The scammers hack into emails and then trick victims into sending them their property deposit.

The Lloyds Bank research shows that reports of conveyancing scams (by their customers) rose by 29% in the second half of last year.

While overall cases are relatively low when compared to other types of scams, the average amount stolen is the highest – approximately £47,000 per victim. Several cases stand at more than £250,000.

Data shows that first-time buyers are most at risk and around 45% of victims are aged 39 or under.

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.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.