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The Growing Threat of Payment Diversion Fraud in Property Transactions
Amidst the booming UK property market, a less visible yet profoundly disruptive force is on the rise—payment diversion fraud. Launched on October 1, 2025, a collaborative campaign by the National Crime Agency (NCA) and The Law Society aims to raise awareness of this fraudulent activity that has cost victims average losses of £82,000. As revealed in a recent report by Action Fraud, this type of fraud has become increasingly sophisticated, often occurring during the crucial moments of property transactions when large sums are transferred.
Understanding Payment Diversion Fraud
Payment diversion fraud primarily involves criminals impersonating legitimate parties such as solicitors, estate agents, or even buyers to redirect real estate purchase funds into their own accounts. Victims are misled into transferring their deposits or final payments to fraudsters instead of the intended recipients. The alarming statistics suggest that between April 2024 and March 2025, 143 cases were reported, with 32% of victims aged between 40-49 and 27% between 30-39, suggesting a concerning pattern amid a younger demographic compared to other fraud types.
Practical Guidance for Prevention
The NCA and The Law Society have disseminated practical guidance aimed at equipping solicitors and conveyancers to combat this growing fraud. The campaign emphasizes three main strategies: CHECK, TEST, and NEVER transfer money without verification. To further protect against this pervasive threat, it is recommended to:
- CHECK by calling the contact number directly before transferring funds since emails can easily be intercepted or diverted.
- TEST the intended account by sending a small amount first to ensure the details are correct.
- NEVER transfer significant amounts until you have verified the authenticity of the account details.
The Importance of Trust in the Legal System
Nick Sharp, deputy director of Fraud at the National Economic Crime Centre (NECC), highlights the detrimental impact of this fraud on public trust in legal and financial institutions. “Average losses when this happens during a property sale are more than £80,000—that is a life-changing sum to lose for most people,” he stated. Sharp underscores the efforts of the NCA to actively target the networks behind these crimes but stresses that preventive measures must be taken seriously.
Social Media and Engaging the Public
In concert with the informational campaign, the NCA and The Law Society have employed social media strategies on platforms such as LinkedIn, X, and Facebook, ensuring widespread dissemination of information on payment diversion fraud. These platforms will serve as vital channels for raising awareness and education, directing users to an informative PDF that details protective measures against fraud.
Conclusion: Taking Action Against Fraud
As property owners and investors, it is essential to remain vigilant in the face of payment diversion fraud. By understanding the mechanics of this fraud and implementing the recommended precautions, we can safeguard our investments and maintain the integrity of property transactions. The awareness campaign launched by the NCA and The Law Society underscores not just the gravity of the situation but also the collaborative effort needed within the legal sector to defend against this deceitful practice. Now, more than ever, staying informed and proactive is crucial.
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