The fraud threats conveyancers face in the digital landscape

Annie Button has written an article that discusses the fraud threats conveyancers face in the digital landscape.

The role of conveyancing is hugely important to maintain movement in the property and mortgage markets. Assurances given from the conveyancing process give buyers and sellers the confidence to complete their sales as they know everything is legally binding. But, conveyancers also deal with a large amount of sensitive information, from financial records to a person’s identification documents.

It is therefore essential that the systems conveyancers have in place are built in such a way that there are no unwanted eyes on that data. However, as the conveyancing world looks to go digital, it must also embrace security and protect itself from the increasingly-sophisticated fraud threats it faces.

A threat that continues to grow

It might sound ominous but the fraud threat, particularly that brought about by cyberattacks, continues to become more and more of a concern. A worrying 75% of law firms in a study by the Solicitors Regulation Authority (SRA) reported having been the victims of a cyberattack.

Clearly, hackers are targeting law firms and conveyancers must be aware that they too are likely to be in the crosshairs of further attacks.

With the amount of money conveyancers are responsible for safely changing hands, it’s also easy to see why they are such a target. So, what are the main threats that conveyancing firms must be on the lookout for and how can they improve their cybersecurity protocols to ensure data breaches are dealt with?

Phishing attacks

Phishing is one of the most common cyber-threats largely because they have such a high success rate, and they are easy for hackers to do. The goal of a phishing attack is to learn the username, password or any other information that can be used to access sensitive data.

They come in the form of an email, often directing the unsuspecting victim to a fraudulent website where they then enter their login details. Once that login information has been gained, it can be used maliciously to access files and sensitive client information.

Those targeted are not only conveyancers but also their clients. However, a recent trend has seen senior firm members specifically targeted due to their high-level access to information. This is known as whaling and can cost firms millions of pounds in damages if they fall victim to them.

Ransomware

Ransomware is an attack that is similar in nature to phishing and also involves emails but rather than trying to steal login details these attacks aim to get users to click on or download malicious software. Often there is an encrypted attachment in the email which then blocks the user’s access to their data and network until a ransom has been paid.

Naturally, this can cause havoc in a law firm as every cog in the wheel needs to keep turning to ensure the conveyancing process is working as it should. But, should someone higher up in the organisation fall victim to a ransomware attack, the more likely it is that a law firm grinds to a halt until the ransomware is removed.

Defences such as cyber-security incident response teams can minimise any hacking breaches and respond quickly to protect assets, operations, and reputation. Unfortunately, cyber-defences are not 100% guaranteed, so it’s essential to have a plan in place should any breaches occur.

Push payment fraud

Conveyancers can embrace technology to help their firms run more smoothly and efficiently but they must arm their clients with as much information as possible about fraud. Understandably, those buying and selling homes are under a great deal of pressure to be quick and responsive when asked to move money around.

Neither party wants to be responsible for any hold-ups, or worse, to be the reason the deal comes crashing down. Sadly, hackers are all too wise to this and they can convince conveyancing clients to transfer their money all by themselves. There are several avenues for success when it comes to push payment fraud; emails, phones and even social media are being used to make people part with their money.

Guiding client decisions

While it’s impossible for law firms and conveyancers to predict what their clients will do, we can help guide their decisions and help highlight potential fraud threats. There is a fine line between scaremongering and simply advising your clients about the pitfalls, however, so a light touch is required.

Advising clients to keep a vigilant eye out for spelling mistakes or unusual formatting in email addresses is a great start. Assuring them of how you will complete a transaction is another step to safeguarding clients as they will be able to spot anything out of the ordinary.

How to ease client worries

One of the simplest ways for conveyancing firms to put their clients at ease through the increasingly stressful mortgage process is to create a cybersecurity strategy. From hiring the right IT professionals to guide and maintain your defences to continuous cybersecurity training for staff, it all helps in the fight against fraud.

Failing to implement these simple strategies puts firms at risk of a data breach, which can lead to hefty fines and ultimately a loss in reputation. Being known as a conveyancing firm that can’t keep your clients’ financial data secure is not only a bad look but also difficult to recover from as potential clients will look elsewhere. It is a lot of money to entrust to a firm that appears untrustworthy, after all.

Security as part of your messaging

Even something as simple as a message of reassurance on your website about the communication channels you use can ease worries. Letting people know which channels you use means they can also spot any potential fraudulent communications posing as your firm.

It’s also wise to inform clients that they can speak with their conveyancer if they become suspicious about the communications they are receiving. A little bit of promoting your cyber-defences goes a long way to making clients comfortable with choosing your law firm.