Conveyancing scam reports made by Lloyds Bank customers increased by 29.1% in the second half of last year, the latest data shows.
Analysis shows that homebuyers are being targeted by criminals hacking emails to exploit the conveyancing process, with increasing numbers tricked into sending their property deposit to fraudsters.
While the overall number of cases is much lower than for other types of fraud, the average amount stolen was the highest, at around £47,000 per victim.
Lloyds Bank says it has also seen several cases where victims have lost more than £250,000.
This compares to £9,037 per victim in investment scams, £6,340 in romance scams and £498 in purchase scams.
With around 45% of victims aged 39 or under, first-time buyers (FTBs) may be at particular risk from this type of scam, given they have no previous experience of the homebuying process.
To avoid these kind of scams, the bank suggests that homebuyers should verify payment instructions, be wary of changes, secure emails, avoid posting online, not be pressurised and pay attention to warnings.
Lloyds Bank fraud prevention director Liz Ziegler says: “Buying a new home is one of the most exciting moments many of us will ever experience. But it can also be incredibly stressful, given the amount of money involved, and the need to navigate a complex legal process.”
“While the financial consequences of these scams are severe, the emotional toll can be even greater. The fraud often leads to the collapse of a property transaction, with a devastating long-term impact on those involved.”
“Fraudsters prey on weaknesses in email security and exploit a conveyancing process that most people may only experience a handful of times in their lives. It’s vital that solicitors also grasp the importance of educating their clients on the risk of this type of scam and make a point of sharing payment details in person at the start of the homebuying process.”
