This so called ‘Friday Afternoon Fraud’ (named as hackers take advantage of a busy working day, where transactions can be hurried through before the weekend) can have a huge impact on buyers, with some victims losing their savings, and the property they intended to buy.
The Howard Mollett case
this year was particularly painful, where the victim, in attempting to buy his first home, lost £67,000 when scammers used his solicitor’s email address to convince him to send the money to alternate bank accounts. He is still trying to retrieve this money, and no one can decide who is to blame.
On one hand, legal firms have an obligation to highlight the risks, with 3 in 10 UK law firms being subject to cyber attacks in the last year. However, in research undertaken by tm group, 58% of firms felt not particularly threatened, or not threatened at all. Whilst understanding protection from cyber crime was important, only 13% strongly agreed that they had spent a high proportion of resources securing their communications.
So, whilst the legal profession focuses on considering the safety of their processes, there are things you can do to protect yourself, your property, and your money.
1. Money and the human approach
If you’re making a bank transaction, or money is changing hands, call your lawyer, using the number you’ve always used for them. Don’t email bank details, and do not automatically transfer money to a bank account given in an email. If your lawyer emails you with bank details, call them and confirm. When you’ve made the transaction, call them again. We get used to needing a paper trail, but when large sums of money are involved, it’s better to talk directly. If the number in the email is not your usual solicitor’s number, or you get forwarded to an automated system, do not call it. Get in touch with your solicitor using the number you’ve used previously, and check whether they meant to send that email.
2. Don’t underestimate a hacker
As victim Howard Mollett said, “This is not someone claiming to be the cousin of the President of Nigeria asking me to wire money to them.” This was not even a similar email address that had one letter different to his solicitor’s. It was his solicitor’s email address. The hacker replied to previous threads, commenting on recent Mollett’s work trips, making it look genuine.
Everything you know about hacking – recognising dodgy misspelt emails, or fake companies – does not quite hit the level here. These hackers are more than competent – they have found a way to impersonate the person you trust with your money.
3. Stay wary, even if expecting an email
Don’t lower your guard because you have been expecting an email requesting the money – that’s how the hackers make it easy. You’re not being asked for money from nowhere, you are anticipating paying this money, and so it’s not at all strange that you’re being asked for it. Even if you’re waiting to give your payment, call your solicitors when an email arrives. Check that the numbers, email and other details match, but ask them to confirm the email, the bank details and the amount. It is too easy to expect to pay, and to be eager to get on with the process. Do not jump in without double checking every time you pay an amount.
4. A change of bank account should set off alarm bells
If your legal firm says that they want you to use a different account to one previously used, or a different account because you’re abroad, or the amount is different – question it, and call them directly. Changes in banking are not the norm, and if issued by email, should be checked carefully.
5. Know when you’re at risk
You are more likely to be the victim of fraud if you have previously had your identity stolen, along with not having a mortgage, or if you’re living overseas. You can also be more at risk if going through a break up or in the middle of a family dispute, as you are more likely to be distracted and rushed when attempting to finalise a deal. Be extra vigilant and pay attention to your accounts.
6. Register your property
If your property is not registered, you are more at risk. Check with the Land Registry,
ensuring your contact details are correct. You can also sign up for alerts if anyone tries to change your property details, for example, attempting to get a mortgage using your property. You can also pay £40 to stop the Land Registry from registering any sale that is not registered under your name and confirmed by a solicitor.
7. Don’t leave your property empty
Whether you’re a landlord, own a holiday home, or have inherited an empty property, don’t leave it empty. Be vigilant about registering it, and either visit it, or get someone to keep an eye on the place and collect the post. Having an empty property puts you at a higher risk.
8. Pick a solicitor who understands the risks and has a plan
This is a hot topic right now, and some firms are responding by using technology to assess conveyancers on the other side of the transaction. When you’re transferring large amounts of money, you want to be sure that not only your solicitors are taking the right precautions, but the other side are as well. Talk to your solicitor
about what they do to avoid ‘Friday afternoon fraud’ and ask any questions you need to.
9. Checking the account first
Another way to be completely sure, if you’re particularly concerned, is to send a small ‘tester’ sum to the account, and then call to check it has been received. If your solicitor can confirm arrival of the money, then you can send the rest.
10. Ensure you’re well protected
Whilst it is definitely down to your lawyer to ensure their systems are secure, you also need to make sure yours are too. That means using very secure passwords, which are not used for anything else, and are changed regularly, as well as keeping anti-virus software up to date, and avoiding using insecure servers to make payments.
Whilst this list should ensure your money arrives to the right people safely, ensuring you have done everything you can to make sure the transaction is secure will be important if anything does go wrong.
Everyone thinks this will never happen to them, or that they are well versed in recognising fake emails, but as the money you put towards your new home is likely to be most of your savings, it is better to be safe than sorry. Always talk to people directly, don’t wait days to see what has happened to the money, and be more wary than you feel necessary. Once the money is gone, it is difficult, if not impossible, to get any of it back.