Conveyancing Bank Transfer Scams: Protect Your Deposit

What is a conveyancing bank transfer scam?

A conveyancing bank transfer scam is a form of authorised push payment fraud. The victim is deceived into authorising a payment to a bank account controlled by a criminal.

During a property transaction, the targeted payment could include:

• an exchange deposit;
• the balance needed before completion;
• Stamp Duty and legal fees being sent to a conveyancer;
• money provided by a family member towards the purchase;
• sale proceeds that should be paid to the seller; or
• funds connected with a remortgage, auction purchase or investment property.

A buyer’s mortgage deposit is their financial contribution towards the purchase. It may form part of the money transferred to the conveyancer rather than being sent as a separately labelled payment. An exchange deposit is often 10% of the purchase price, although a different amount may be agreed.

How the scam can happen

Some attacks begin when a criminal gains access to the buyer’s, seller’s or legal firm’s email account. The criminal may silently monitor the conversation until a large payment is expected.

A fraudulent email can then be inserted into the genuine conversation. It may contain the correct property address, solicitor’s name, payment amount and expected completion date. Only the bank details have been changed.

Other criminals create an email address or website that closely resembles a genuine law firm. A single letter may be added, removed or replaced. The message can include copied branding, a genuine solicitor’s name and a convincing signature.

Warning signs buyers and sellers may overlook

• Changed account details: You are told that the usual client account is unavailable or has recently changed.
• Unexpected urgency: The sender says completion will fail unless payment is made immediately.
• A different communication method: Payment instructions suddenly arrive through WhatsApp, text message or an unfamiliar portal.
• A subtle address difference: The email domain contains an extra letter, hyphen or different ending.
• A beneficiary-name problem: Your bank reports that the account name does not match, cannot be checked or is only a partial match.
• A request for secrecy: You are asked not to contact another member of the firm or are told that the solicitor is unavailable.
• An unusual destination: You are asked to pay an individual, estate agent, overseas account or unrelated company instead of the verified legal firm’s client account.
• Pressure after a bank warning: The sender tells you to ignore your bank’s fraud alert or choose an inaccurate payment purpose.

A genuine transaction can occasionally involve unfamiliar arrangements, but unusual instructions should be confirmed independently before any money moves.

How to verify solicitor bank details safely

1. Check the legal firm at the beginning. Confirm that the firm and individual are regulated. In England and Wales, use the Solicitors Regulation Authority register where applicable.
2. Ask how payment instructions will be provided. Find out whether the firm uses an initial letter, secure client portal or another controlled process.
3. Ask whether its bank details ever change. Many firms clearly warn clients that they will not notify bank-account changes by email.
4. Use an independently verified telephone number. Do not call a number contained only in the email requesting payment. Use the regulator’s directory, the firm’s established website or verified paperwork received earlier.
5. Read the details back. Confirm the account name, sort code, account number, payment reference and intended amount with the firm.
6. Pay attention to Confirmation of Payee. Stop if your bank reports a mismatch or unexpected account name. A successful name match is helpful, but it does not prove that the payment instruction itself is genuine.
7. Take bank warnings seriously. Answer payment-purpose questions accurately and contact your bank if it raises a concern.
8. Confirm receipt separately. After paying, call the firm through the same verified route and confirm that the money has reached its client account.

Sellers can also lose completion money

Conveyancing payment fraud does not affect buyers only. A criminal who gains access to a seller’s email account may send false bank details to the solicitor and ask for the sale proceeds to be redirected.

Sellers should provide their nominated bank details through the firm’s approved process and expect additional checks if they later request a change. A delay caused by careful verification is preferable to sale proceeds being sent to the wrong account.

If you receive an unexpected message asking you to confirm or change where the sale proceeds should be paid, contact the firm immediately using independently verified details.

Extra precautions for overseas buyers

Overseas buyers may deal with a UK solicitor, foreign bank, currency-transfer provider and family members in different time zones. More organisations and communication channels can create additional opportunities for false instructions.

• Verify the solicitor and currency provider separately.
• Agree in advance which organisation will send money to the solicitor.
• Confirm whether funds must come from an account in the buyer’s own name.
• Do not rely on forwarded payment instructions from an estate agent or another intermediary.
• Allow enough time for security and source-of-funds checks instead of transferring money under last-minute pressure.

The mandatory UK reimbursement rules discussed below do not generally cover international payments. An overseas buyer should ask their bank what fraud protections apply before transferring money.

What to do if you have transferred money to a scammer

Act immediately. The chance of recovering money may reduce once it is moved from the receiving account.

1. Call your bank’s fraud team immediately. Use the number in your banking app, on your card or on the bank’s official website. Explain that the payment was part of a conveyancing bank transfer scam.
2. Ask the bank to attempt a recall. Request that it contacts the receiving bank and tries to freeze the funds.
3. Contact the genuine solicitor. Use a verified telephone number rather than replying to the suspicious email chain.
4. Preserve the evidence. Keep emails, full email headers, messages, payment confirmations, bank warnings, account details and a record of every call.
5. Secure your accounts. Change the email password, sign out other sessions, check forwarding rules and enable multi-factor authentication. Change reused passwords on other services.
6. Report the fraud. In England, Wales and Northern Ireland, report it to Report Fraud. In Scotland, contact Police Scotland on 101. Use 999 where there is an immediate danger or crime in progress.

Do not continue discussing the incident through an email account that may still be compromised.

Will the bank refund a stolen house deposit?

Mandatory reimbursement rules introduced on 7 October 2024 cover many qualifying authorised push payment scams involving UK-to-UK Faster Payments or retail CHAPS transfers.

Eligible consumers are generally protected up to £85,000 per claim, subject to the detailed rules, exclusions and customer standards. Banks may choose to reimburse more, but they are not automatically required to do so.

This limitation matters in property transactions because a deposit or completion balance can exceed £85,000. International payments, civil disputes, card payments, cryptocurrency transactions and some other circumstances are outside the mandatory scheme.

Report the incident to the bank immediately, even though the formal reporting period can be longer. If the bank rejects the claim or you disagree with its handling, first make a formal complaint to the bank. The Financial Ombudsman Service may then be able to investigate.

Do not assume that every loss will be refunded. Eligibility depends on the payment method, payment date, destination account, customer type and circumstances. Responsibility may also need to be investigated where an email account, legal firm or payment process was compromised.

Questions to ask your conveyancer before transferring money

• How and when will you provide your client-account details?
• Will you ever change your bank details during my transaction?
• Which telephone number should I use to verify a payment?
• What exact account name should appear during Confirmation of Payee?
• Do you use a secure client portal for payment information?
• Who should I contact if I receive conflicting instructions?
• How will you confirm that my payment has arrived?
• If I am selling, how will you verify the account receiving my sale proceeds?

Common misunderstandings

• The email contains private transaction details, so it must be genuine. A criminal may have been monitoring the account.
• The email is part of the correct conversation. Compromised accounts can be used to insert and delete messages.
• A £1 test transfer makes the account safe. It confirms the account works, not who controls it.
• A matching account name guarantees safety. Confirmation of Payee is useful but cannot authenticate the email instruction.
• The bank will refund everything. The mandatory limit and eligibility rules may leave some losses uncovered.
• Only first-time buyers are targeted. Buyers, sellers, investors, landlords and overseas purchasers can all be affected.

Checking legal professionals across the UK

The relevant regulator or professional register depends on where the legal professional practises. For England and Wales, check the SRA Solicitors Register. Licensed conveyancers may instead be regulated by the Council for Licensed Conveyancers.

For Scotland, use the Law Society of Scotland Find a Solicitor service. For Northern Ireland, use the Law Society of Northern Ireland directory.

Scotland normally uses concluded missives and settlement rather than the exchange-and-completion terminology commonly used elsewhere. The anti-fraud precautions remain equally important.

Protect the payment, not just the property

Survey results, searches and legal documents receive considerable attention during a property purchase, but the payment itself also needs a clear security process. Independent verification takes only a few minutes and can prevent a life-changing loss.

The safest approach is simple: establish trusted contact details early, distrust unexpected changes and verify every large transfer through a second communication channel.