You’ve done the hard work of house hunting and found a property to buy. With one hand over the champagne and an eye on your emails, it’s time to sit down and take that pivotal step: pay your deposit.
In today’s increasingly digital world, sending such a large amount carries more risks than you might think.
Report fraudThe National Fraud Reporting Center said victims lost an average of £78,393 to property scams in 2024-25.
This includes money transfer fraud, where criminals pose as money couriers or real estate agents to intercept large amounts of money exchanged during real estate transactions.
This can be done by using fake emails close to the lawyer’s real email address, or hacking or accessing emails using phishing attacks.
It’s also known as the “Friday afternoon scam,” after the time of the week when most home sales are completed — which in itself is a reminder, as a potential homebuyer, not to let your guard down.
The widespread use of artificial intelligence has also made email spoofing easier than ever, as fraudsters can produce professional, formal emails and even imitate company logos.
Property Scams: What to Watch Out for
Real estate transactions largely take place in the final stages of the home buying process and scammers work hard to steal huge sums of money.
There is also no guarantee that stolen funds can be recovered. If payment is approved by the buyer, banks are not always responsible. Banks have introduced multi-factor authentication and will strive to ensure the account details you pay match, but this cannot replace due diligence.
When you first appoint your carrier, you should receive a letter of instruction including their banking details. This is it only Details you should trust throughout the transaction. If you are ever asked to transfer funds to a different account, you should exercise extreme caution and contact your carrier using the number on the header of the message you received from them to ensure that the request is genuine.
Be particularly concerned if you’re asked to transfer money via online payment services like PayPal, Western Union, or even smaller online banks like Revolut or Monzo – this could be a hidden red flag.
Scammers may also ask you to install software or share one-time verification codes, but your bank or carrier will never ask you for remote access to your device or sensitive information like passwords or PINs.
If you suspect fraud, contact your bank immediately and report the incident to Fraud Reporting.
How does your carrier protect your money?
Carriers tend to be targeted much less often than customers because of the stringent measures they have to take to stop cybercriminals. Ask your carrier what measures they intend to take to make your transaction as secure as possible.
The Council of Licensed Carriers (CLC) requires the companies it regulates to have secure communication channels, encrypted email systems, and regularly train employees on fraud prevention. In addition, we conduct periodic audits to ensure they comply with these security measures.
Our secure badge on the websites of companies we regulate also shows that you are dealing with a legitimate company and you will have the right to seek compensation if anything unfortunate goes wrong. You can find a list of carriers regulated by CLC here.
Transfer fraud is a constant threat. Scammers rely on lack of information and diligence. With preparation and some knowledge, you can do your best to keep your money safe.
Stephen Ward is Director of Strategy and External Relations at Board of Licensed Carriers
