"The fraud often leads to the collapse of a property transaction, with a devastating long-term impact on those involved."
- Liz Ziegler, fraud prevention director at Lloyds Bank
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.
With around 45% of victims aged 39 or under, first-time buyers may be at particular risk from this type of scam, given they have no previous experience of the homebuying process.
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 at 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.”
