not send any financial information in an
unprotected email, which could result
in it being intercepted by fraudsters.
Equally, it is important for lawyers to
remind clients that their account details
are not going to alter during the course of
a transaction.
Many firms are also reviewing their
processes with a view to ensuring that
any account details received are in
fact verified as being genuine with the
client. Other means of correspondence
are being used to make these checks.
The timing of certain parts of the
transaction are also being tweaked,
for example, account details are now
being verified right at the outset of the
transaction, rather than the traditional
“just before” exchange and completion.
Conveyancing firms are also reviewing
their anti-virus products and ensuring
that the latest versions are being used
with a view to preventing this new wave
of fraud.
Using the Lender Exchange (a secure
portal that provides law firms with the
mechanism to exchange information
with lenders in conjunction with the
management of their conveyancing
panels) can also prevent fraud in
mortgage completions, whereby the
system provides a product that can
be used to check that the seller’s
conveyancer’s client account matches
that which is held on the database
system. This method of authenticating
bank accounts and confirming their
legitimacy has increased security.
New schemes are hitting the market to
protect buyers and conveyancers and it
is now not unheard of for some lenders
to make it a requirement for firms to
be registered with a “safe scheme” in
order to remain on the panel. This way,
lenders are able to demonstrate that
they are taking action against fraud and
doing everything possible to mitigate
exposure of fraud to their clients by only
using panel of conveyancers. What
this means for firms is registering with a
product to ensure that lines of electronic
communication are safe Of course,
email encryption and safe schemes will
not prevent fraud entirely, they need to
be used appropriately and if password
codes are used for clients and lawyers
to decrypt messages, then these need
to be kept securely. Likewise, clients
using personal computers without the
adequate virus protection will also be at
significant risk. The software may not
be available for hand-held devices and
using the code on different computers
will increase the risk of cyber fraud.
Until firms can ensure that there is a
failsafe product or system that can
be used on a broad scale within the
profession that can be relied upon,
conveyancers must demonstrate that
they have acted in accordance with
best practice and that they are taking
all reasonable steps to protect clients.
Clients alike must remain vigilant to this
scam and other property transaction
crime and almost certainly take on board
together with professionals a multifaceted set of precautions such as:
-F
ace-to-face is the most secure way of
communicating sensitive information;
-D
o not sent bank details by email,
either in the body of an email or
as an attachment (as key words in
attachments can only be picked up on
hacker’s programs);
-D
iscuss current issues/scams with your
clients and make them aware, alert
them to the safeguards and reassure
them that you will not be changing your
account details in the last-minute.
Regrettably, we are living a climate
where lawyers are having to undertake
enhanced due diligence in order to
protect and mitigate risk to the firm and
to clients and are ever having to remain
guarded as to what the next new scam
will be, so lets all be prepared.
By Sylvia Garcia
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