Scottish solicitors are being warned they are the “first line of defence” in the war against scammers trying to hijack property deals and steal clients’ funds.
Conveyancing lawyers are being urged to stay alert to the risks and tighten safeguards against fraudsters siphoning off homebuyers’ cash through increasingly sophisticated scams targeting property transactions.
The National Crime Agency (NCA) is collaborating with The Law Society of Scotland to raise awareness among solicitors over so-called Payment Diversion Fraud (PDF).
They say victims are being conned out of “life-changing” sums of money, with losses averaging around £80,000 per case.
The awareness campaign – primarily aimed at solicitors and conveyancers – is being delivered alongside the Home Office’s national “Stop! Think Fraud” campaign.
It comes as criminals are exploiting digital communication channels and trusted professional relationships to mine sensitive information and intercept payments at critical stages of property transactions.
They hack into the email accounts of solicitors, estate agents or buyers, then pose as the trusted party and send convincing last-minute emails urging victims to transfer house deposits or balances into fraudulent bank accounts in slick sting operations.
Ian Messer, the Law Society of Scotland’s Director of Financial Compliance, said while cases involving clients of Scottish law firms remain relatively rare, the huge sums tied up in property transactions mean the impact of payment diversion fraud can be “financially devastating when it does happen”.
He said: “It’s vital that all Scottish law firms involved with property transactions are alert to the risks of Payment Diversion Fraud and take appropriate steps to reduce these risks.
“This includes ensuring that clients understand how the payment process will work so that they can spot warning signs.
“We welcome the NCA campaign which sets out steps which can be taken by firms and members of the public to reduce the risk of Payment Diversion Fraud.”
Mr Messer added: “We will continue to work with law firms, law enforcement and other regulatory bodies to make the profession aware of developments in the often sophisticated methods deployed by criminals so that firm controls.”
The NCA urges people to always check before transferring money, warning emails can be intercepted or diverted and stress no one should ever transfer money until they are satisfied the details are genuine.
Nick Sharp, the NCA’s deputy director fraud, said: “Payment diversion fraud is one of the highest harm types of fraud experienced by victims, and when it manifests during a property purchase transaction, it has a huge impact on those who fall victim.
“Average losses when this happens during a property sale are more than £80,000 – that is a life-changing sum to lose for most people – but it also does enormous harm to the trust and faith that people place in the legal and financial systems that they rely on.”
Mr Sharp added: “That is why the NCA is actively targeting and disrupting the criminal networks behind payment diversion fraud through investigations and intelligence sharing with international partners.
“However, prevention remains equally as important as disruptions.”
He says the campaign is designed to reinforce vigilance during high-value property deals, where even small failures in verification can lead to significant financial losses.
Dot Mullally, partner with Edinburgh and Lothians-based McDougall McQueen Solicitors, said: “As conveyancing solicitors, we are seeing an increase in payment fraud, particularly where criminals intercept emails and attempt to pose as lawyers to redirect purchase funds. These attempted scams are increasing, highly sophisticated and often happen at the point clients are expecting to transfer large sums.
“The key message for clients is simple: always verify bank details directly with your solicitor in person or using a trusted telephone number, and never act on an email alone, especially if it suggests a change in payment details. Law firms very rarely change their bank details mid-transaction, and certainly not by email.
“A moment of caution can prevent a life-changing loss — if something doesn’t feel right, stop , think and check again before sending any money.”
