The Cost of Trust: Impersonation Scams Drain Millions from UK Consumers

Impersonation scams take place when a criminal contacts you pretending to be a trusted organisation such as a bank, utility company or solicitor. The scams can be very sophisticated and often start with a call, text, email or direct message with an urgent request for money or personal and financial information.

In the legal sector, conveyancing transactions are often the target - due to the large amounts of money being moved between exchange and completion, and the high pressure to ensure funds arrive on time, so transactions are not delayed.

Take Five's research reveals that only 51% of people consistently verify the legitimacy of requests for money or personal information. The study also suggests that individuals are more inclined to check the validity of an email address (67%), look for spelling and grammar errors (59%), or confirm the legitimacy of a website address (57%).

Criminals are becoming increasingly sophisticated in their approaches to stealing people’s money and personal information. As trends in technology continue to evolve, so do the means for perpetrators to unlawfully intercept private data over the internet. Methods include phishing scams and malicious software attacks, both of which place private conversations and individuals vulnerable to exploitation by savvy criminals.

According to Take Five's research, younger adults have a higher risk of falling prey to fraud attempts. Only 38% of individuals aged 18-34 always verify the authenticity of requests for their money or personal information, the lowest percentage among all age groups.

39% of people in this age group believed that they had received communication from a criminal after responding to an initial request for information they believed was from a trusted organisation.

Katy Worobec, Managing Director of Economic Crime at UK Finance said:

“We receive genuine communication from trusted organisations on a daily basis, meaning it’s not always easy for us to spot when an approach for information is in fact from a criminal. Anyone can be caught out by a scam in the heat of the moment and criminals are constantly adapting their tactics to appear legitimate. It has never been more important to take steps to check for genuine communication and follow the advice of the Take Five to Stop Fraud campaign and to stop, challenge and protect.”

During Take Five Week, we have been providing information for lawyers and their clients on how to protect themselves from impersonation scams. It's crucial to be aware of these scams and understand the damage they can cause. Protecting your firm and clients should be a top priority.

Are you worried about how scammers target law firms? Take a look at our frequently asked questions to find out all the common methods used, and learn how to mitigate the risks for your firm using Safe Capital.

Safe Capital provides a way for law firms to share bank details with their clients, obtain client bank details, and take payments directly, safely and securely - mitigating the risk of Friday afternoon fraud. To find out more get in touch today.