IP IPSA Co Conveyancing Fraud Paul Tucker Business Development - - PowerPoint PPT Presentation

IP IPSA

Co Conveyancing Fraud

Paul Tucker

Business Development Manager

Overview Employee Fraud Client Bank Detail Fraud Vendor Conveyancing Fraud Identification Theft Cloning Lawyer Checker

Agenda

The referred to law firms as the ‘SOFT UNDERBELLY’

• f the British Economy.

6th April 2017

Spring Update Risk Outlook released

99 reports of

cybercrimes between Dec 2015 and 2016

½ of all reports for

email modification are against

conveyancing proceeds.

25% of law firms

report being targeted by cyber criminals.

¾ of all cybercrimes

involve email modification fraud.

10% more reports

• f money misappropriated

in 2016 than in the previous year

One in ten

Attacks resulting in money stolen.

Bogus law firms doubled

since 2012 to 700+ per year.

SR SRA – Risk k Outlook Key Facts

A Modern Age – lines blur

§ Personal use and business use on mobiles and laptops § Handling and dealing with sensitive information

Type of Cybercrime

• Phishing
• Cloned websites
• Money Laundering
• Malware
• DDOS Denial of Service
• Bogus firms
• Telephone fraud
• Employee theft
• Identity theft
• Mobile phone hacks

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

§ £140,000 sent to fraudsters § Three directors face rebuke after being tricked by fraudsters § Involved both the COLP and COFA

Fraudulent Transfer

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

• 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

Hayward Moon – Vendor Conveyancing Fraud

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

• f course.”

Remain Vigilant

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?

Claims:

§ Breach of warranty of authority § Negligence – Duty of care § Breach of trust § Breach of undertaking § 2011 Code used

P&P Property Ltd v Owen White and Catlin: October 2016

Where does the liability lie?

§ 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.

P&P Property Ltd v Owen White and Catlin: October 2016

Where does the liability lie?

§ Posed as owner of a £3million London Property § Diane Moorcroft changed her name by deed poll § Duped estate agents and solicitors.

A simple and audacious fraud

Property Fraud

“A mother and daughter who tried to take control of a £3million Kensington property are to be jailed.”

§ Found liable for breach of trust. § Tenant was found to be masquerading as owner. § Ordered to pay over £1M.

Mishcon de Reya

January 2017 £1M fraud bill - firm found liable

January 2017 £1M fraud bill - firm found liable As featured on Fake Britain and the One Show

Identity Theft

Recent Cases:

• Purrunsing: April 2016
• P&P Property Ltd: October 2016
• Dreamvar:

Parallels:

• High value property
• Seller was abroad
• Quick sale demanded
• Unoccupied/tenanted property
• Unencumbered property
• Being sold at significant discount

to market value

§ Cloned sites? § What is your policy? § Do you Google check your firm? § Misuse of websites

Regulation & Advice

Identity Theft – Cloned Website

Identity Theft – Cloned Website

Provide enhanced risk management and due diligence for solicitors and licensed conveyancers during transmission of funds. What we do

Lawyer Checker

Enhanced Due Diligence Protect client funds Additional step to a robust risk management procedure

Why use our products?

Questions

Paul.Tucker@lawyerchecker.co.uk 01829 307059 | 07495 782138 Suite 4, Wright House, 67 High Street, Tarporley, Cheshire, CW6 0DP

Contact