26 Skyline | Relaunch Edition 1 | Winter 2021
What areas are giving you cause for concern and seem to be on the rise ?
There are lots of ‘ red flag ’ indicators that we ’ ve seen over the last few months . So if we cover them in types , I ’ d say for Coronavirus Business Interruption Scheme ( CBIL ) and BBL fraud you might see sizeable lump sums received into personal accounts on behalf of a family member or friend ’ s business which could be Government support loans . Or loans being used to fund the deposit for the property purchase .
On the furlough scheme , we ’ ve seen cases where multiple different payments from HMRC across all schemes have proved to be fraudulent .
In terms of Cash Indicators there are a few things we ’ re seeing :
1 Out of profile cash credits and third party funding from PPE companies which are used to fund mortgage payments
1 Multiple Government grants received into personal accounts which are not in line with the known profile of the customer
1 Out of profile and high value international credits received into personal accounts and then paid onto the mortgage account
1 Excessive cash deposited via external ATMs and Post Offices where the source of funds are unknown .
Have you seen any new fraud trends ?
Actually , recently we ’ ve seen an increase in scams where criminals are impersonating Solicitors to obtain funds fraudulently . Whilst this isn ’ t necessarily a new scam , in fact it ’ s one that Solicitors already tend to warn and educate buyers on , we have now seen some really high value cases and suspect this will continue as sales have soared . We ’ ve seen :
1 The criminals researching property sales to identify the property buyer and Solicitor managing the sale
1 That once they have the information they need , the criminals set up email accounts very similar to the genuine Solicitors . From a glance they look genuine but may have an extra or missing letter or punctuation mark . Please check these details with your customer
1 The criminal communicates with the buyer – usually through the email which has been set up and provides fake invoices and account details for the payments to be made to
1 In one instance the criminals actually called the buyer purporting to be from the Solicitors .
What can brokers do to help themselves and their clients ?
There are many areas in this regard and for most it is probably second nature , however , by way of a reminder :
◊ Know your customer and carry out robust identity checks
◊ Know your introducers
◊ Follow AML and Anti-bribery and Corruption policies and procedures
◊ Have a robust recruitment process for advisers
◊ Take on enhanced due diligence for high risk cases , such as :
1 Non face-to-face , particularly relevant in today ’ s marketplace with Covid restrictions operating in many areas
1 High value loans 1 Internet referrals
◊ Check the transparency of the transaction – does it look right ?
◊ Where is the deposit coming from ? 1 Ask for proof
◊ Sense check the customers employment 1 Is it feasible ?
1 Do the bank statements confirm an appropriate lifestyle ?
1 Does the salary reflect the occupation ?
1 Call the employers HR department to confirm employment , salary , etc .
1 Check the customers social media profile for confirmation of occupation etc .
◊ Sense check the transaction / property 1 Does it suit the customer ’ s needs ?
Thank you for talking to us Tracey !