‘Friday afternoon fraud’

Conveyancing fraud, often called ‘Friday afternoon fraud’, is a scam that capitalises on the fact that many property sales are completed on a Friday. Fraudsters infiltrate email communications between homebuyers and conveyancers, waiting for the right moment to strike. The criminals typically stay quiet until just before the exchange of contracts or completion – when a substantial sum of money is due for transfer from the buyer to their conveyancer.

At this critical moment, the scammer sends a fraudulent yet convincing email to the homebuyer, purporting to be from the conveyancer. This email contains altered bank account details for the deposit transfer.

BUYER REALISES SOMETHING’S AMISS

Once the homebuyer unknowingly transfers funds into this fraudulent account, the scammers quickly drain and shut it down. When the buyer realises something’s amiss, the criminals have already dispersed the money to various other accounts, often overseas.

These scams are known as authorised push payments (APPs). In these cases, the victim is tricked into authorising a payment, making them liable for the cost of the fraud. APP fraud isn’t limited to email – it can also occur over the phone or in person.

HIGH-PRESSURE ENVIRONMENT OF PROPERTY EXCHANGES

“In 2022 alone, UK Finance reported that over £1.2 billion was stolen through authorised and unauthorised fraudulent payments. The report highlighted that 78% of APP fraud cases start online, while 18% begin via telecommunications.”

To safeguard yourself against conveyancing fraud, remember never to rush into transferring money if something seems off.

Fraudsters exploit the high-pressure environment of property exchanges to confuse victims into making mistakes.

PREVENT FALLING INTO THE TRAP OF SCAMMERS

Always enquire about the procedures your conveyancer has in place to protect clients from scams. No question is too trivial when it comes to securing your funds. When it’s time to transfer money, never rely solely on email communications. Always confirm the bank details with your conveyancer using a phone number you know is accurate.

While taking these precautions might seem cumbersome, especially when time is of the essence, they are crucial to prevent falling into the trap of scammers. Remember, it’s better to take the time to verify details than to risk losing a significant amount of money to fraudsters.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.