The recent report issued by Lloyds Bank has issued a pressing warning regarding a highly damaging scam that is resulting in an average loss of £47,000 for Britons. The bank has brought attention to a significant increase in a scam targeting homebuyers, with a growing number of individuals becoming victims. Criminals have been infiltrating emails to exploit the conveyancing process, deceiving individuals into transferring their property deposits to fraudsters.
According to a fraud prevention director at Lloyds Bank, this type of scam can have a severe and enduring impact on the victims, resulting in the collapse of property transactions. The emotional and financial toll can be substantial, particularly impacting individuals who may only encounter the conveyancing process a few times in their lifetime.
The analysis conducted by the bank has revealed that while the number of cases is lower in comparison to other types of fraud, the average amount stolen is the highest, with victims losing an average of £47,000. There have also been cases in which victims have suffered losses exceeding £250,000.
Lloyds Bank has emphasized that first-time homebuyers, especially those aged 39 or younger, may be at heightened risk from this scam. In a particularly concerning case, a woman named Chloe incurred significant financial losses while attempting to purchase a two-bedroom flat in Birmingham. She had primarily communicated with her solicitors via email and ultimately fell victim to a meticulously crafted spoof email.
In response to this alarming surge in scams, Lloyds Bank has provided recommendations on how homebuyers can avoid falling prey to conveyancing scams. It is advised to verify payment instructions with solicitors in person or over the phone using trusted contact details. Additionally, individuals are urged to exercise caution in the face of sudden changes in payment details and to enhance their email account security by using robust, unique passwords and activating two-factor authentication.
Lloyds Bank also advises against sharing sensitive information related to property purchases on social media and resisting pressure to make immediate payments. Banks have mechanisms in place to alert customers about unusual or potentially fraudulent transactions, and individuals are advised to heed these warnings.
As the number of individuals falling victim to this costly scam continues to rise, it is crucial for homebuyers to remain vigilant and take measures to secure their transactions. Through exercising caution and following the recommended steps, individuals can shield themselves from the devastating financial and emotional consequences.
Reference: Lloyds Bank