On Thursday 7 January 2016 I issued a Consumer Alert warning both consumers and solicitors alike to protect themselves from trickery and infiltration by thieves and scammers.
This warning followed a news report on 6 January in The Daily Mail Australia, which published news of a cruel hoax involving a conveyancing client of UK solicitor. Scammers had somehow intercepted emails between the clients and their solicitors, and made their move just before a large payment was due to be made. The young couple received an email, apparently from their lawyers, advising them to transfer the deposit for their new home to a different bank account, as “the firm’s usual bank account was being audited”. The victims lost tens of thousands of pounds by transferring money to thieves, thinking they were entrusting money to their solicitor.
Although the Victorian regulator has not yet discovered these same frauds being perpetrated on Victorian clients, the likelihood of similar criminal activity affecting Victorians is high. Law firms are asked to anticipate the risk of their clients being tricked into transferring trust money inadvertently to thieves. Some of the steps to be taken or considered are listed below.
- Stop and think before you click on any links or attachments from uninvited or unexpected contacts.
- When someone emails you with last-minute changes to a bank account number for sending payments, call them to confirm. Use the contact number you already have for them - do not call the number on the suspicious email as it may be part of the scam. Consider transferring a small amount first and call your contact to check it arrives safely.
- Know who you are dealing with for internet transactions by typing in the published address of the business you are intending to pay into your internet browser.
- Protect your email account against malware and phishing activities designed to change your details or transfer funds unlawfully. Do this with safe, strong passwords, firewalls, anti-virus software and anti-spyware programs.
Useful information about online fraud and security is published by the ACCC and the UK Government.
Michael McGarvie
CEO & Commissioner