Warning on identity theft

This week’s Law Society Gazette includes a Warning on Identity Theft, reporting on a case in Bolton where the law firm SK Solicitors says that suspected property fraudsters or money launderers have been using fake notepaper to pose as and transact in the name of the firm.

Creating fake headed notepaper on a PC is a simple task. In the article, Law Society chief executive Desmond Hudson warns solicitors to ensure that they check the identity of a firm with the Solicitors Regulation Authority if they have concerns. Of course, checking on the SRA website will only confirm that the law firm with whom you are apparently dealing does indeed exist, as does the solicitor apparently on the other side of the transaction. It will not reveal that the person with whom you are dealing is an imposter. Lawyers need to look further for signs of fraud. The Law Society’s Practice Note on Mortgage Fraud warns that “Some fraudsters will try to assume the identity of professionals who actually exist. You should check that both the details and the final destination of documents match the details in the directory. You may consider contacting the firm directly by the contact details on the registry if you have concerns about the bona fides of the representatives on the other side to the transaction, particularly if there is a last minute change of representative.” Conveyancers should also be particularly vigilant in relation to email addresses that appear at odds with the firm’s name. Questions should be raised where a conveyancer uses a commercial email account (e.g. hotmail, yahoo, btinternet) that is not associated with the firm’s domain name, or name generally.