IP IPSA Co Conveyancing Fraud
Paul Tucker Business Development Manager
Agenda Overview Employee Fraud Client Bank Detail Fraud Vendor Conveyancing Fraud Identification Theft Cloning Lawyer Checker
The referred to law firms as the ‘SOFT UNDERBELLY’ of the British Economy.
SRA – Risk SR k Outlook 99 reports of Key Facts ½ of all reports for 6 th April 2017 cybercrimes between Dec 2015 and 2016 Spring Update email modification are Risk Outlook released against 25% of law firms conveyancing report being targeted by ¾ of all cybercrimes proceeds . cyber criminals. involve email modification fraud. 10% more reports One in ten Bogus law firms Attacks resulting in of money misappropriated money stolen. doubled in 2016 than in the previous year since 2012 to 700+ per year.
A Modern Age – lines blur § Personal use and business use on mobiles and laptops § Handling and dealing with sensitive information
Type of Cybercrime • Phishing • Bogus firms • Telephone fraud • Cloned websites • Employee theft • Money Laundering • Identity theft • Malware • Mobile phone hacks • DDOS Denial of Service
Fraud is fraud – does not mean Cyber Crime
The rise of Employee Fraud
The rise of Employee Fraud • Conveyancer abused position. • 8 counts of Fraud. • Fraudulent requests made to lenders. • Total of £719,744
The rise of Employee Fraud
The Risk. Do you know who you are remitting funds to? SRA Rebuke for firm over loss of client funds to fraudster: § £333k sent to fraudster account § Client email was hacked § No checks were carried out to confirm the bank details were those of the client. § Breach of Principle 10 § Breach of 20.1 of Account Rules 2011
Fraudulent Transfer § £140,000 sent to fraudsters § Three directors face rebuke after being tricked by fraudsters § Involved both the COLP and COFA
Bogus Firms • Bogus firms have doubled to more than 700 in 2016 • Steal the identity of a solicitor and their firm • Still a ongoing and current problem facing the industry
Hayward Moon – Vendor Conveyancing Fraud • Property transaction was due to complete • Vendors solicitors was a local firm • Hayward Moon regularly dealt with them • After chasing, requisitions arrived last minute • Included different bank details • Accounts flagged this
Remain Vigilant Conveyancing Executive Marie Turrell stated: “Our policy of using Lawyer Checker helped us identify this fraud and later that evening all I could think of were the consequences on me and our firm if we had not used Lawyer Checker as a matter of course.”
Where does the liability lie? Purrunsing: April 2016 § Both seller’s and buyer’s conveyancers held jointly liable § Failed to undertake due diligence § Fraudulent seller of a vacant property – dubious job in Dubai § 1998 edition of Code used
Where does the liability lie? P&P Property Ltd v Owen White and Catlin: October 2016 Claims: § Breach of warranty of authority § Negligence – Duty of care § Breach of trust § Breach of undertaking § 2011 Code used
Where does the liability lie? P&P Property Ltd v Owen White and Catlin: October 2016 § Held that the seller’s solicitors were not expected to be alerted by any of the ‘warning signs’ § The seller’s solicitors and the estate agents were not found in breach of any of the claims made against them. § It is open to the purchaser’s solicitors to have sought undertakings from the seller’s solicitor with regard to due diligence.
A simple and audacious fraud § Posed as owner of a £3million London Property § Diane Moorcroft changed her name by deed poll § Duped estate agents and solicitors.
Property Fraud “A mother and daughter who tried to take control of a £3million Kensington property are to be jailed.”
January 2017 £1M fraud bill - firm found liable Mishcon de Reya § Found liable for breach of trust. § Tenant was found to be masquerading as owner. § Ordered to pay over £1M.
January 2017 £1M fraud bill - firm found liable As featured on Fake Britain and the One Show
Identity Theft Recent Cases: Parallels: • High value property • Purrunsing: April 2016 • Seller was abroad • P&P Property Ltd: October 2016 • Quick sale demanded • Dreamvar: • Unoccupied/tenanted property • Unencumbered property • Being sold at significant discount to market value
Regulation & Advice Cloned sites? § What is your policy? § Do you Google check your firm? § Misuse of websites §
Identity Theft – Cloned Website
Identity Theft – Cloned Website
What we do Provide enhanced risk management and due diligence for solicitors and licensed conveyancers during transmission of funds.
Lawyer Checker
Why use our products? Additional step to a Enhanced Protect client robust risk Due Diligence funds management procedure
Questions
Contact Paul.Tucker@lawyerchecker.co.uk 01829 307059 | 07495 782138 Suite 4, Wright House, 67 High Street, Tarporley, Cheshire, CW6 0DP
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