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Deposit misdirection fraud - How much do you know?

10 November 2016

Coventry logo

Coventry Building Society has shared some useful information around a new scam targeting homebuyers.

“Subject: New scam targets homebuyers

The Coventry for intermediaries would like to make you aware of a new form of online fraud that could target your clients and their hard-earned cash. It’s called ‘misdirection fraud’ and is costing homebuyers £2.8 million in financial crime each year – a figure that’s potentially set to grow.

In a nutshell, hackers will monitor emails between a solicitor and the client. When the hacker identifies a financial transaction is about to take place, they email the homebuyer, under the guise of the solicitor and ask them to make their deposit into an alternative account – the fraudster’s account. The unsuspecting buyer follows the instructions and the criminal collects the proceeds.

Here at the Coventry for intermediaries we want to protect your customers from criminal activity by raising awareness of this growing issue. Solicitor firms are starting to make their clients aware of this risk and we’d encourage clients to confirm bank details with their solicitor before making any transactions, especially where bank details are changed close to the completion date or details are received via email. Hopefully by raising awareness of this crime we can protect mortgage customers from any future losses.”

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