Law firms targeted in redemption statement scam

When a solicitor requests a redemption statement from a lender, the lender in many instances sends that redemption statement to the firm by way of fax transmission.

Solicitors have reported to the Law Society that, on receiving redemption statements by fax, they have noted that the bank account details where the redemption monies are to be remitted have been substituted with falsified bank account details.

It seems that the redemption statements have been intercepted between the lender and the solicitor and are then sent on to the solicitor with fake bank account details. There is a clear intention to trick solicitors into sending funds to a fraudulent account.

The fake redemption statements appear to be genuine. They disclose the correct client name, address and account number. Similarly the amount due as shown on the statement has been the amount that the clients would have expected to pay to redeem the loan in full.

Halifax and also Nationwide Building Society statements have been affected.

Those receiving redemption statements should carefully scrutinise the statements and check that the redemption bank details provided are genuine.

So far the redemption statements affected have been by way of fax transmissions received by email. However the Law Society warned solicitors to scrutinise all redemption communications whether they are by traditional fax or email.

If you receive a fake redemption statement please contact the Financial Compliance Team on 0131 226 8897 or fincomp@lawscot.org.uk

If you find that you have been a victim of this scam, please report it to Police Scotland and ActionFraud online or by calling 0300 123 2040.

If you have any questions or wish to discuss these issues please contact the Professional Practice Team on 0131 226 8896 or profprac@lawscot.org.uk