The national news continues to report on cases where law firms are infiltrated, bank details are altered, and funds are redirected to criminal bank accounts.
This happens when law firms transfer funds between each other, and increasingly when remitting funds to clients.
The most common threats to law firms identified in the recent Solicitors Regulation Authority (SRA) Risk Outlook 2019/20 include:
- Email modification fraud – where emails are intercepted, and emails are falsified between the firm and client to obtain bank details
- Phishing and vishing – where a criminal uses email or telephone to obtain confidential information
- Malware – software that is specifically designed to disrupt, damage, or gain unauthorised access to a computer system. The most malicious type of malware is called ‘ransomware;’ which is software designed to block access to a computer until a sum of money has been paid.
- CEO fraud – where a criminal impersonates a senior figure at a law firm. The aim is usually to deceive a staff member into making money transfers.
- Identity theft – where bogus firms copy the identity and brand of a law firm.
According to the SRA, in the first six months of 2019, law firms reported a loss of £731,250 of client money to this type of crime.
Join our short webinar where we look real life examples of how fraudsters have intercepted funds and redirected them to criminal accounts and what you can do to mitigate the risk.
Webinar Details
Webinar: Funds transfer fraud… Think it couldn’t happen to you?
Date: Tuesday 3rd December 2019
Time: 10.30am
This article was submitted to be published by Lawyer Checker as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
