Is client care the key to combatting clever fraudsters?

The UK's fraud prevention service Cifas recently reported that recorded fraud has seen an annual increase of a massive 25 per cent and identity fraud is still the greatest threat.
The number of young adult identity fraud victims has increased by a huge 51.7 per cent since 2011. Identity theft of law firms and solicitors is rapidly increasing, with more cases being reported than ever before.

Solicitors who undertake conveyancing on a national basis like we do are significantly exposed to the risk of acting for an identity thief. Some practitioners combat this risk by simply stating they will not act for clients they do not meet. We combat the risk by having a series of internal measures and training processes, which have so far protected us. These are:

• Always ask the client why they chose our firm: This not only serves a marketing purpose, as all solicitors should keep a record of their sources of introduction, but also as a useful check for clients who do not have a good reason to use us, which might be an indication of fraud;

• Be vigilant for signs of unusual behavior: Most conveyancing clients are interested in their transaction and want to make contact and/or ask questions. A disinterested client could be a fraudster;

• Always ask why the client is selling: Flag clients who have owned the property for only a short space of time;

• Verify clients' identity: Use a combination of original documents and electronic verification. We also check clients' signatures on every document to make sure it is a good match;

• Be interested in clients: Do not be afraid to ask them questions. If any of our staff are in doubt, we tell them to seek advice from a senior colleague; there is no such thing as a stupid question in our firm;

• Ask clients to return a signed copy of the client care letter by post: We then know that the letter was delivered to the contact address and the signatory must have had access to it to be able to sign the letter;

• Regularly publish identity theft stories: This raises staff's awareness of current trends; and

• Finally, ensure all staff without exception receive annual training on anti-fraud measures.

I don't think there is any way to fully guarantee protection against a clever fraudster. However, by using careful risk management procedures, the risks of being caught out can be reduced. As ever, solicitors operate in a very difficult climate. 

Kathryn Taylor is managing partner of Gordon Brown Law Firm @GordonBrownLaw gblf.co.uk