It could be you!

No. I have not won the Lottery!

This is a blog about a rather sorry tale involving an English couple buying their first home. This is not however something that is restricted to our neighbours across the border and is a salutory reminder to all of us in respect of transfering your deposit for your house purchase.

This couple were victims of fraudsters who monitor e mails sent between a solicitor and a homebuyer. The fraudsters hack into e mails where cash transactions are discussed. Just before a payment is to be made the fraudsters contact the homebuyer posing as their solicitors and advising that their bank details have changed. The unsuspecting homebuyers send the cash to the new account where it is taken by the fraudsters.

The couple's downfall was that they appeared to deal with their solicitors solely by e mail. They were asked for the £45K deposit by e mail and then a further e mail was a received apparently from the solicitiors but in essence from the fraudsters stating that the bank account was being audited and the cash should be paid into a Barclays branch. The client went in and paid the cash and then to add insult to injury received an e mail from the solicitors/fraudsters confirming the transaction and thanking them for the payment.

Barclays were able to recover £22K but the remainder was lost because the scammers withdrew it in three transactions at different branches in a single day.

Given the fact that the bank only acted on the clients' instructions then I would have thought that the bank are blameless. Getting the balance back for the clients looks a tall order. So how could they have avoided the scam?

Lessons to be learned

• Meet your solicitiors face to face.

• Ensure that you know the names of the individuals dealing with your transaction.

• If you have any concerns about your transaction then speak to the solicitior in charge.

• Do not rely upon bank details e mailed to you - get these verbally or through the post.

• Ask for the solicitors bank details to be given to you at the outset of the transaction.

• If any alterations are made to the transfer seek verbal clarification verbally from the solicitor.

E mails are part of our day to day life and are an essential part of any transaction. However, you need to remember that whilst e mail represents the easiest form of communication. It is not always the best way of communicating certain information. It is never too early to call your solicitior.

It can however sometimes be too late!

++