• March 28, 2024
 Protecting Estate Funds With Consumer Bank Account Checker

Protecting Estate Funds With Consumer Bank Account Checker

When sending money to beneficiaries under an estate, can you be sure whose account you’re sending those funds to?

Unfortunately, for many legal firms, the answer is no. The vast majority of firms do have a tried and tested due diligence process, but what these processes often don’t account for is the level of sophistication of the modern-day cyber-criminal. As is the case with conveyancing, Wills and probate transactions are very attractive to this specific type of expert. Truth is, your files and emails contain everything a fraudster could need to ensure that estate money goes into their pockets and not the beneficiaries. So, while you work on various parts of multiple matters, juggling day to day file management requirements, there could be someone in the background who’s one goal is to compromise the process (your process) and hope you won’t be prepared for what’s to come.

These issues were discussed at last month’s Today’s Wills and Probate roundtable event. Consumer Bank Account Checker (CBAC) was introduced as a vital step in the process of transferring money to beneficiaries under an estate. This part of the Lawyer Checker suite of tools to protect law firms uses Experian data to swiftly validate the source or destination of funds. You complete this search using the beneficiaries full name, DOB, address, account number, and sort code. From this, you will receive a PDF report stating whether that account and name is a match.

At a cost of £2.50+VAT per CBAC search, most firms would be hard pushed to argue to their insurer and/or to a judge why they didn’t do a search of this kind before sending funds. For solicitors, it can be argued that not carrying out a search means they are in breach of Principle 10 of the Solicitors Code of Conduct – to protect client’s money and assets.

“Cyber fraud slays the insurer” says Holly Lewis, Key Relationship Manager at Lawyer Checker, quoting the recent words of a major PI insurer.

Society of Trust & Estate Practitioners (STEP) predicted that the cost of probate fraud is £150 million, stating that 1 in 2 professionals have come across probate fraud. As these figures increase, PI insurers are becoming stricter on the circumstances in which they will insure and importantly, the ones where they will pay out. Traditional due diligence practices will no longer suffice, and firms are being questioned about what enhanced due diligence they carry out when transferring funds. The Solicitors Regulation Authority, the Law Society and your PI insurer all know that there are enhanced due diligence tools in the market and firms who wish to manage their premiums will do well to consider which ones they should implement as a matter of urgency (preferably before their renewal and definitely before they are compromised!).

Holly further adds: “Cyber criminals are patient, with fraudsters lurking in the background (possibly in your domain) for between 100-200 days before making any moves. When they do make their move, it is catastrophic for all involved.

“West Midlands Police Cyber Crime Unit reported that £11 million of client money was compromised last year

“FCA believes that there are at least 1400 organised crime gangs targeting law firms

“CBAC provides Enhanced Due Diligence and an added layer of protection when remitting sales proceeds to your client to avoid liability.”

Holly Lewis, Key Relationship Manager at Lawyer Checker