Law Firms Overwhelmed By Daily Spoofing, Phishing And Financial Loss

Experts have warned that 0.8% of the world’s GDP or around $600 billion is lost to cyber crime each year, yet reports suggest the legal sector is ill prepared for dealing with and preventing cyber attacks.
If it is not already, protecting your firm from the risk of cyber attack should be high on your agenda. According to HM Government there are around 1,400 criminal organisations who are actively targeting the legal sector at this very moment, preying on out of date or inadequate methods of defence against cyber attacks.
In 2018 alone, £354.3 million was stolen via authorised push payment fraud which uses social engineering and cyber fraud to convince people to part with their money. This represented a 92% increase on the money stolen via these means in 2017.
Additionally, the Cyber Security Breaches Survey 2019, released by the Department for Digital, Culture, Media and Sport (DCMS) found that at least 80% of businesses had experienced sustained and frequent phishing attempts last year. This threat is only increasing and we want to know how prepared your firm is for any potential attack.
Despite the rise in cyber crime, only 1% of UK cyber criminality resulted in a prosecution.  According to London based law firm, RPC, the UK successfully prosecuted 65 cases for computer hacking last year. Whilst this represented a 38% increase on the 47 prosecutions in 2017, the fact that over 17,900 cases of computer hacking were reported in 2018 shows the UK’s ineptitude in catching these criminals following a successful attack.
If the legal sector is unable to catch online criminals, it becomes vital that law firms are doing everything they can to prevent attacks in the first place. Unfortunately, it seems that the vast majority of businesses are still struggling to plan for data breaches and attacks.The DCMS report claims that only 56% of respondents had a valid cyber certification in place whilst only 16% have implemented any formal procedures or cyber security incident management processes and a mere third of business using a clear cyber policy. Staff training was also perceived to be poor with only 37% of businesses actively training staff to spot the signs of a cyber threat.
Here at Today’s Conveyancer, we want to know how accurate these figures are. The legal sector needs to understand how prepared it is for a significant cyber attack. We are therefore asking for your help! If you can spare the time, we would appreciate it if you could complete our anonymous survey.
Why is this relevant to you?

• Fraud is on the rise. 60% of law firms reported a security incident in 2018.
• The SRA reported 217 Scam Alerts in 2018.
• West Midlands Police Cyber Crime Unit have reported £11m of client money was compromised in 2018.

Help your profession gain a fresh perspective on this ever increasing threat! Complete the anonymous survey by clicking

Industry Experts To Reveal The Future Of Conveyancing

Geodesys – part of Anglian Water and a leading provider of conveyancing searches for residential and commercial properties throughout England and Wales – has teamed up with a series of industry experts for its new Continuing Professional Development (CPD) seminar. The event will explore what the conveyancing industry will look like in 2025 and how that will impact the way in which conveyancers manage their transactions whilst remaining compliant.
The complimentary seminar will take place on 19th June, from 9am to 1pm at The Old Bridge Hotel in Huntingdon and includes lunch, which will be provided at the end of the session. Jonny Davey, Geodesys Product Manager commented: “Our industry is undergoing a lot of change at an increasingly fast pace, so it is key for all conveyancing professionals to look to the future and be aware of what’s coming. We’ve put together a fantastic line-up of incredibly knowledgeable experts for our latest CPD seminar so we can all brush up on the latest developments.”
The first part of the event will focus on Digital Street, HM Land Registry’s research and development project looking at how data and technology can transform the land and property market. Lauren Tombs, Senior Product Manager for the Land Registry will offer a demonstration of the digital transfer proof of concept, which was developed based on smart contracts and blockchain technology.
Following on from the publication of her whitepaper “Modernising the Home Moving Process”, leading industry speaker and Director of Delivery for the Conveyancing Association Beth Rudolf will outline the government’s plans to tackle uncertainty and speed up the home-buying process. Seminar participants will hear the latest updates regarding reservation agreements, property logbooks and the best ways to involve buyers in the homebuying process of the future.
The seminar will also feature the latest information on HM Land Registry’s initiative to transform Local Land Charges (LLC) searches by creating a centralised digital service to include local authority registers. The update will be provided by Jamie Winch, Policy & Stakeholder Manager on the HM Land Registry (HMLR) Local Land Charges (LLC) programme.
Closing the session, Geodesys’ Jonny Davey will lead a discussion about the different ways in which data quality and transparency can support more informed decision-making in the conveyancing process.
To attend the event or find out more about Geodesys click here or contact Lauren Lieser on 07885 135 314.

This article was submitted to be published by Geodesys as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

Are law firms wise to scams

As law firms and clients wise up to fraud, the cyber criminals are having to find new avenues to use their old scamming tricks to intercept money transfers.
Conveyancing scams, which are a type of email modification fraud, are rife due to the significant amount of money passing between a law firm and its client. Criminals intervene and falsify emails between clients and law firms, resulting in bank details being changed and money being transferred to hackers instead.
These types are scams are also known as “Friday afternoon Fraud” or even “Monday morning Fraud” where conmen will target first thing Monday morning due to staff just starting their working week and perhaps not fully concentrating – or just before the weekend to avoid detection and businesses are closed for the weekend and won’t be noticed until a few days later.
Conveyancing has become the highest risk area of law, according to the Solicitors Regulation Authority (SRA) approximately £10m a year is lost to email modification fraud – even though the number of reported cases has been rising since 2016, there were fewer cases reported last year.  SRA believes that conveyancers are becoming savvy and more aware of the imminent threat on the business and therefore fraudsters are having to find new ways.
A recent case involving two brothers, Keith Pibworth, 59 and Alan, 54 lost a staggering £60,000 to an email scam. Their law firm, Powell & Co, who was handling their late father’s estate received an email, who purported to be from Mr Pibworth, but was from a fraudster, with new bank account instructions, asking for it to be paid into a different account.
The fraudster, in this instance, had gained access to its victim’s online system and so is able to monitor correspondence and intercept emails between them and their solicitor.
It was many days after the interception that Mr Pibworth realised the money was not in his account. He said:
“I found the whole thing quite baffling. You expect a certain level of service when you use a professional, but they [later told me they] hadn’t even opened my original email.”
He stated that the firm did not report the scam to their indemnity insurers or the SRA straight away and they did not replace the money to him until he threatened to use another law firm.
Mr Pibworth added: “Without a shadow of a doubt they were trying to wriggle out of paying.”
The same firm was involved in another scam case back in 2016 where they lost £100,000 of a young family’s money, which was to be used to purchase a home.
The SRA rules are transparent in these types of cases as they expect law firms to be held accountable for losing client money and give back to their clients what they have lost. In certain situations, the SRA has taken action against those firms who have failed to return the money after losing it through fraud.
Rob Hailstone, founder of the Bold Legal Group believes it is difficult for law firms to pick up on fraud due to the sophistication of fraudsters. He added that conveyancing firms/departments are more aware of these types of scams than in other working areas such as the probate sector. He thinks firms should not rely on email and should be checking financial details by way of telephone or in person.
He further adds: “I warn firms day in and day out about frauds of this kind and have a red flag list of 27 things firms should be looking out for. If you get an email with sensitive account information and then a contradictory email with different information, that should raise a pretty big red flag.
“The takeaway is that the whole legal industry needs to be aware of this, especially as the scammers are looking at different targets than just conveyancing,” he said.
Firms are slowly becoming more aware of these types of scams, especially in conveyancing – but to avoid money being stolen it is vital that firms implement cyber security measures so that they are not exposed to cyber criminals. However, the SRA will continue to reiterate warnings as the attacks are showing no signs of slowing down.
As a conveyancer, do you feel the sector is becoming more aware of these scams? What measures do you have in place to avoid them?

A third of all buyers or sellers turn to the estate agent involved for advice on which solicitor to use, says When You Move.

A third of home movers or approximately 300,000 people every year turn solely to estate agents to recommend a conveyancing solicitor, it has been revealed.
Conveyancing brokerage When You Move says its research shows that 32% of home buyers complete little or no research into which conveyancer to use when buying or selling a home, relying entirely on agents for advice.
The research, which was conducted among some 2,000 respondents, also highlights how a ‘local’ conveyancer is important to people, but that the internet is making inroads into the market.
A fifth of those canvassed had gone online to find a solicitor, basing their decisions on how high up the online search rankings each company is listed. Also, 28% said they had only realised how high their conveyancing fees were going to be once it was too late.
“We are living in an era where we are able to track our food deliveries and our parcels on our smart phones and rely heavily on reviews when choosing a restaurant or hotel,” says When You Move chief executive Simon Bath (left).
“Why aren’t we doing the same for the most important transaction of our lives?”
When the Watford-based company was launched two years ago it claimed to revolutionise the conveyancing process by giving agents, solicitors and home movers full visibility of the conveyancing process.
It also claimed that many agents believe some conveyancers are too slow and fail to keep those involves in a house sale up to date with the latest information.

LPL vows to bring conveyancing into the 21st century

New conveyancing firm LPL has promised to deliver 21st century conveyancing to its clients, allowing them to sign legal documents digitally.
The homebuying process can drag on for months, becoming ever more expensive and stressful. A significant factor behind those delays is the time taken to get legal documentation signed, particularly when clients are required to print out pages of paperwork or rely on the postal service.
LPL has vowed to change all that, offering clients the chance to sign paperwork digitally, whether on their mobile phones, tablets or PCs.
The digital signature feature is being rolled out alongside the firm’s electronic client care packs, giving customers the ability to sign the initial paperwork within just ten minutes of instruction. LPL intends to roll out electronic signatures into other areas of the conveyancing process in the final quarter of the year.
The digital signature capability is just the latest example of how LPL intends to utilise technology to improve the conveyancing process, following the announcement of LPL Cloud, a cloud-based conveyancing system which will allow clients to check the progress of their transaction, as well as upload, complete and sign forms. Introducers will be invited to monitor the progress of referred client’s transactions.
Fiaz Khalid from LPL said: “We firmly believe that bringing greater use of technology into the conveyancing process can relieve some of the stress homebuyers go through, and ensure that transactions go through much quicker. It’s a much more efficient way of working, eliminating duplication of data input and helping the environment to boot. I’m confident that our personal approach, combined with the way we are using the latest technology, is a winning combination.”
LPL, a brand new division of Read Roper & Read Solicitors launches on the 1^st August 2017. For updates on the firm’s launch, check out the LPL website or email Newbusiness@lpropertylawyers.co.uk.

Wales Release Autumn Housing Budget

There has been much speculation regarding the Autumn Budget and how it will impact the housing market in recent weeks. The Welsh Government have offered details that suggest strong support for housing professionals.
Although the initial announcement indicated a significant increase in NHS spending, local authorities were left considering how they can support their services following the eighth successive budget cut.
Potentially, a huge winner from the budget is the housing market starting with a £45 million investment, shattering the initial £90 million estimate over a three year period, being offered towards the innovative housing programme which aims to stimulate the design and delivery of new quality, affordable homes.
In compliance with the central Government’s wishes to support vulnerable people and reduce homelessness, the budget has focused energy towards improving the situation for many people struggling in this area. £126 million has been given to the Housing Support Grant which helps in homelessness prevention in Wales.
Additionally, the Integrated Care Fund, which aims to help people remain in their homes when they are struggling, has been given an investment increase of £35 million; they will now receive £85 million overall.
Finally, continued annual funding of £108 million to support local authorities and stock transfer organisation in achieving and maintaining the Welsh Housing Quality Standard has been provided through the Welsh Budget.
Commenting on the announcement, CIH Cymru director Matt Dicks said: “This budget reflects Welsh Government’s strong commitment to supporting housing professionals to deliver on the housing aspiration and ambitions of communities across Wales.
“We must remain fully grounded however in the realities facing many of those communities, where poverty, the ongoing impact of welfare reform, in particular, the roll-out of Universal Credit, and access to affordable and suitable housing continue to have a very real impact.
“If this and future budgets are to have a positive effect on these communities it is vital that the ongoing review into affordable housing supply in Wales carries through the momentum of the positive work currently taking place. In our view in relation to the financial planning this must include providing greater certainty to housing providers over long-term funding.”
Whilst the improved funding to the sector and a determination to combat homelessness will benefit many, the concern on how to deliver the needed affordable housing stock through this investment could be a concern moving forward.
Will these investments help improve the housing market? Will this ensure that housing stock is provided?

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Bulk business: why larger conveyancing firms offer a better quality service

Harpal Singh - Broker Conveyancing

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14th September 2018

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"Advisers, and certainly their clients, do not want to be working with a firm where the conveyancer works one day a week, and/or where the time taken to deal with a case can be far too long."

For those advisers recommending conveyancing firms, and using platforms like Broker Conveyancing, there has been a significant increase in the number of firms conducting, what we might call, bulk business. That is important, because while conveyancing has traditionally been something of a cottage industry, our belief is that it is via the larger firms, who carry out large numbers of cases, where clients are most likely to get a quality service and who are best placed to meet the timings required.
The quarterly Conveyancing Market Tracker from Search Acumen often gives a real insight into the levels of business being undertaken by all conveyancing firms, and this latest one is no different. If anything, it proves that the vast majority of cases are handled by the larger conveyancing firms and the progression away from lots of firms carrying out very small numbers of cases continues.
Interestingly, the latest data shows that it is firms outside the ‘Top 50’ who have made the most progress recently. It calls these the ‘challenger firms’ and there is clearly a growing amount of competition in this space – the Top 50 look likely to face much more in the way of ‘peer group pressure’ in the future with a number of these firms having significant and ambitious expansion plans.
The lower half of the Top 100 saw the biggest increase in transactions during quarter two this year with their cases up 23% on Q1, compared to the ‘Top 50’ who saw a not too dissimilar 19% uplift. Those Top 50 increased their share of the market to 20%, and there was an increase in the number of firms carrying out more than 50 transactions, up to 332. Unsurprisingly – and this has been a trend for a number of years – the number of firms carrying out less than 50 has continued to drop, now down to 3,812 from 3,870.
In the not too distant past you might have seen 5-6,000 firms carrying out some form of conveyancing work each quarter, but that is now down to 4,144. And, as can be seen, the bulk of those firms are only doing a very small number of cases – you might wonder whether such activity is sustainable, especially if you are taking a ‘part-time’ approach to this type of work. Advisers, and certainly their clients, do not want to be working with a firm where the conveyancer works one day a week, and/or where the time taken to deal with a case can be far too long.

We’ve always pushed the message for advisers to recommend large conveyancing operators who are best placed to deal with large numbers of cases, and have the specialist expertise and resources to take a case through to completion quickly. That message is as relevant as it has ever been, but it is also heartening to see the growth in the number of ‘challenger’ firms who clearly want to make their own mark and will ultimately provide greater choice for advisers.
One thing this type of growth and competition should provide is an ongoing commitment to excellence and efficiency. The conveyancing industry as a whole is doing much to champion and support the changes necessary to speed up the home-buying process, and with the leading firms feeling the metaphorical ‘breath on their neck’ from these challengers, it should drive even greater standards and quality.
The one ‘fly in the ointment’ here of course is the number of overall transactions and this is an issue for the entire housing market, not just conveyancers. The Search Acumen data suggests total transactions fell during Q2 from 271,500 in the first three months of the year to 241,200. That is a significant drop and, even if this figure was 14% up on Q2 last year, we are all aware of how subdued the market feels at present especially when it comes to purchases. Indeed, we remain very reliant on the strength of the remortgage market and thankfully this has been the case for some time and I believe will be maintained.
That said, there are a great number of uncertainties swirling around, not just our market, but the entire economy. Brexit truly is the great unknown but what we can all do is deliver as much certainty as possible for our clients in as many areas as possible. In conveyancing this means utilising the skills and experience of a growing number of quality, larger firms who can be easily accessed through Broker Conveyancing and others, and will give you and your client the very best chance of getting that case completed within the desired timeframe.