Imagine this: A first-time buyer is days away from getting the keys to her new flat. An email arrives, appearing to be from her solicitor, with updated bank details for the deposit transfer. It looks genuine – the sender’s address is almost identical, and even the firm’s logo and sign-off are there. Rushing to not delay her move, she sends the £50,000 deposit to the “new” account. Days later, she calls her solicitor only to hear: “We never sent that email.” The money is gone. This nightmare scenario is happening in the UK right now, as fraudsters prey on homebuyers and those remortgaging. In one recent case, a British buyer lost £640,000 – their entire house purchase funds – after criminals intercepted emails and sent a fake payment request on official-looking letterhead. The fraud was so sophisticated and timely that the victim had no idea until it was too late, and most of the money was never recovered.
Fraudsters are increasingly targeting ordinary mortgage borrowers with scams that can be devastating. According to UK Finance, over £570 million was stolen through payment fraud in just the first half of 2024. These crimes range from online purchase scams to complex mortgage cons, and they spare no one – first-time buyers, home movers, and people remortgaging are all at risk. In fact, industry data shows the majority of scams (about 72%) start with online contact like emails or text messages, and another 16% begin with phone calls. That means fraudsters will tug at your sleeve through everyday channels, disguising themselves as trusted advisers, banks or solicitors. This article is a practical guide on how to recognize their tricks, avoid the traps, and safeguard your home purchase or refinance from scams.
Common Mortgage and Financial Scams to Watch Out For
Fraud comes in many guises. Here are some of the most common types of mortgage and finance scams targeting UK borrowers:
- Email Payment Diversion (Conveyancing Fraud): This is the dreaded solicitor email scam. Criminals hack or spoof emails between you and your conveyancer. At the critical moment, they send a message (posing as your lawyer) saying the firm’s bank account details have changed and urging you to send your deposit or closing balance to a new account – which they control. Everything looks legitimate, down to the reference numbers and even headed paper in some cases. But it’s a con. Once you transfer the money, it goes straight to the fraudster’s account. By the time the ruse is uncovered, your money may be gone. Red alert: any last-minute change in payment instructions is a huge warning sign.
- Impersonation of Banks or Brokers (Clone Firms): Beware of unsolicited calls or emails from people claiming to be your bank, mortgage broker, or even the Financial Conduct Authority (FCA). Scammers often pose as real companies or officials, using the name and registration details of legitimate firms to appear credible. This is known as a “clone firm” scam. They might say you’ve been “pre-approved” for a special mortgage deal, or that they can refinance your loan to a lower rate – but first, you need to pay an upfront fee or provide sensitive information. Fraudsters have even pretended to be UK Finance representatives offering fake loans (UK Finance never offers loans). If someone contacts you out of the blue claiming to represent a bank or broker and asks for money or personal details, treat it as highly suspect.
- Phishing Emails and Texts: Not all scams are elaborate – many are basic phishing attempts. You might get an email that looks like it’s from your bank’s mortgage department or a government scheme, asking you to log in and “verify” your details due to a security issue. The email will usually include a link to a fake website that captures your login credentials. Or you receive a text message (SMS) saying “HSBC: A new document is ready for your mortgage account, login here” with a link. These messages often mimic official wording and logos but tend to have a generic greeting (“Dear Customer”) or a slight typo in the sender’s address. Remember: Banks and official bodies won’t send you links out of the blue and ask you to enter full passwords or personal info via email/text.
- Telephone Scams (Vishing) and WhatsApp Scams: Fraudsters may call pretending to be from your bank’s fraud team or even your mortgage lender’s helpline. They’ll sound professional and may already know basic info about you (like your address or mortgage amount, gleaned from data breaches or social media). The caller might say, “We’ve noticed unusual activity” or “Your mortgage payment didn’t go through,” and then pressure you to verify your account by telling them your one-time passcode or by transferring money to a “safe account”. This is a scam – banks never ask you to move your money to another account for security. Similarly, beware WhatsApp or social media messages from someone claiming to be your broker using a personal account – always stick to official channels.
- Upfront Fee and Fake Services: These scams prey on those who are eager or desperate. You might see ads or get emails offering “fast-track mortgage approval” or debt consolidation. The catch? You must pay a fee upfront (for “insurance” or “processing”) and you’ll be promised a great deal in return. Once you pay, the offer disappears – along with your money. Another variant targets people struggling with payments: a fraudster claims they can negotiate better mortgage terms or stop a repossession for a fee. In reality, they do nothing. Rule of thumb: if someone guarantees you a financial product or cure-all fix that sounds too good and asks for money first, it’s almost certainly a scam.
These are just a few examples. Scammers constantly adjust their tactics, but they all rely on similar tricks to ensnare victims. Next, we’ll look at how these fraudsters operate and the red flags that give them away.
How Fraudsters Operate (Phishing, Hacking and Social Engineering)
Sophisticated lies: Modern scammers are organized and often technically savvy. They may hack into email accounts or use malware to monitor communications. In the case of mortgage scams, they might infiltrate a solicitor’s or buyer’s email chain, waiting for just the right moment to strike – usually when a large payment is due. As one police alert put it, criminals actively target property purchases and almost always pretend to be your lawyer to con you into sending funds to them. They can register fake domain names that look nearly identical to a law firm’s address (e.g. johnsmith@smith-law.co.uk vs johnsmith@smithlaw.co.uk) and set up fake phone lines to impersonate offices.
Social engineering: Fraudsters are masters of manipulation. They often gather personal details about you to make their approach convincing – for instance, trawling social media. (If you’ve excitedly posted on Facebook about “finally exchanging contracts!”, beware. Scammers may use that info to time their attack.) They will drop enough authentic details to earn your trust, like referencing your bank’s name, the property address, or a recent transaction. They play on emotions: excitement (the thrill of a new home), fear (of the deal falling through or a payment problem), or urgency.
Phishing and spoofing: Many scams begin with a phishing email or text. These messages are crafted to look real – complete with logos and official-sounding language – but usually contain a link or attachment that, if clicked, either infects your device or takes you to a fake website. For example, you might get an email that appears to be from HMRC about a housing incentive, or from your bank saying “verify your direct debit details”. If you click the link, it asks for login credentials or personal data which go straight to the crooks. Phone scammers (“vishers”) may spoof the telephone number to match your bank or broker’s official number on caller ID. They might even refer to a recent action you took (“The remortgage application you submitted”) to sound genuine.
The pressure tactics: A common thread in these scams is pressure and urgency. Scammers will often insist that you act immediately. In the conveyancing scam, they’ll say “Funds must be transferred today to avoid delaying your purchase.” On the phone, they might warn “If we don’t resolve this now, your account could be frozen” or “this offer expires today.” By panicking you, they hope you won’t have time to double-check their story. As the national fraud prevention campaign Take Five advises, always take a moment to pause and think – no matter how urgent it seems.
Professional fronts: Many fraudsters put on a very professional front. They may have slick websites, realistic documents, or polite manners on the phone. They might cite official-sounding references, like “FCA registration number” or send you forms on headed paper. Don’t be fooled – anyone can copy logos and registration numbers. Genuine institutions encourage you to verify them independently. Remember, scammers often have materials that look identical to the real thing, so you can’t rely on appearances alone.
Red Flags: Warning Signs of a Mortgage Scam
While scams can be convincing, they do leave clues. Here are some warning signs and red flags that should set off your alarm bells:
- Unsolicited or Unexpected Contact: You’re contacted out of the blue by someone about your mortgage or finances, especially if you weren’t expecting any communication. This could be a call, text, or email. Legitimate providers rarely cold-call or email you about a mortgage offer or problem without prior contact. If it’s unexpected, be cautious.
- Pressure to Act Quickly: The person is pushing you to do something right now. Phrases like “urgent, act immediately or you’ll lose the deal” or “this is your last chance” are classic ploys. Scammers want you to rush. A real bank or broker will never object if you say you need time to think or to verify details – they will understand your caution.
- Changes to Normal Procedure: Any suggestion that bank details have changed, or a different payment method is needed at the last minute, should raise a red flag. For example, an email claiming “We’ve updated our account details, send the payment to this new sort code/account.” Reputable firms know that law firms rarely change their bank accounts mid-transaction. Always be skeptical of any change in payment instructions.
- Dodgy Email Addresses and Contact Info: Look carefully at email addresses. Scammers often use addresses that look almost right but have subtle differences – an extra letter, hyphen or a different domain (like .com instead of .co.uk). Also, if an supposed official emails you from a Gmail/Yahoo account (e.g. mortgagebroker@gmail.com), it’s likely fake. Verify phone numbers too: if you’re asked to call back on a number that isn’t the standard office line (for instance, a mobile number for a bank fraud department – unlikely!), be on alert.
- Requests for Personal Info or Money via Email/Phone: Banks and brokers never ask for your sensitive PINs or passwords over email or phone. They also won’t ask you to transfer money out of your account as a “test” or for “safekeeping”. If someone claiming to be from your mortgage company or bank asks for your online banking password, PIN, one-time passcode, or any other secret info, that’s a huge warning sign of fraud. Similarly, if they instruct you to transfer funds to another account for any reason, do not do it – no legitimate firm will ever ask you to do this.
- Too Good to Be True Offers or Odd Stories: Be wary of deals that seem amazingly good with little proof, or stories that don’t quite add up. If an “advisor” promises a fixed-rate mortgage far below market rates, or says they can wipe out your debt magically – something’s off. Likewise, if you get an email that you’ve won a prize or rebate related to your mortgage (when you never entered anything), it’s probably a scam. Trust your instincts: if it sounds fishy or too good to be true, it probably is not real.
- Poor Grammar or Generic Greetings: Many phishing communications come from abroad and may have tell-tale grammar mistakes, odd phrases, or simply address you as “Dear Sir/Madam” instead of your name. While some sophisticated scams are pretty polished, a sloppy email is an immediate red flag. Legitimate lenders and solicitors usually address you by name and have proper spelling/grammar (though absence of mistakes alone doesn’t guarantee legitimacy, presence of mistakes is a warning).
- They Won’t Let You Verify: If you suggest calling them back on the main official number or say you want to verify their identity, a scammer might discourage you or give excuses. They might say, “If you hang up now, the deal is off” or “I’m on a different team, the main line won’t be able to help you.” A real bank/broker welcomes you taking security steps – they have nothing to hide. Feeling stonewalled or rushed is a sure sign something isn’t right.
In short, always keep your guard up when handling large financial transactions. Next, let’s clarify what a genuine mortgage broker (like us) will never do, and how we protect your information.
What We (Your Mortgage Broker) Would NEVER Ask For
It’s important for you to know how a legitimate mortgage broker or lender behaves, so you can spot an imposter. Here are things we will never ask you to do or share:
- Your Secure Banking Info: We will never ask for your bank card PIN, your online banking password, or your full security details. No bank or FCA-authorised firm will ask for these – not over the phone, not by email, not via text. If anyone claiming to be a financial professional asks for your PIN or password, assume it’s fraudulent.
- One-Time Passcodes or Verification Codes: Those text codes your bank sends to confirm identity or payments? We don’t need those from you – and we will never ask for them. Scammers often pretend they need that number to “verify your account” or “stop a fraudulent transaction.” In reality, they want to use it to access your account. Never share a one-time code with someone who contacts you.
- Money Transfers to Unknown Accounts: We do not ask clients to transfer funds to strange accounts. For example, a broker’s fee (if any) would be discussed openly and paid in a traceable way – and never to an account that isn’t clearly linked to our firm. We certainly would never ask you to move your money to a so-called “safe account” – that’s a common scam tactic banks also warn about. If someone says “We’re from the bank, and your money’s at risk, put it in this safe account,” hang up – it’s a con.
- Pressure or Threats: We will never bully you into a quick decision or threaten that your mortgage offer will vanish within hours. Yes, rates change and offers have deadlines, but you will never be asked to act so urgently that you can’t take time to verify what’s going on. Any high-pressure, can’t-pause scenario is a red flag.
- Secrecy: We won’t tell you to “keep this between us” or deter you from consulting your bank or family. Scammers often try to isolate you by saying others (even your bank or solicitor) can’t help or shouldn’t be told. A genuine advisor would encourage you to ask questions and involve any necessary parties. We have nothing to hide.
In essence, our mortgage brokerage operates with transparency and security. We’re regulated by the FCA, and we follow strict protocols to keep your data and money safe. If an interaction with someone claiming to be us feels odd, you’re right to be concerned. Here’s how you can verify communications and stay secure.
How We Communicate Securely (and How You Can Verify It’s Really Us)
Official channels only: Our firm communicates with clients through secure, established channels. That means if we email you, it will come from an official company email address (ending in our company’s domain, not a random Gmail). If we call, it will either be from our known office number or in response to something you expected. We also use secure document portals for sensitive information, so you won’t be asked to email bank statements or ID documents to an unverified address.
Your right to verify: We encourage all our clients to verify it’s really us. If you get any communication that seems unusual or you just want to double-check, please do. You can call our main office line (the number on our website and business card) and ask to confirm the email or call. Our staff will happily confirm whether that request was genuine. We’d far rather you spend an extra five minutes verifying us than risk any doubt. A legitimate broker or bank will understand and applaud your caution – it’s not a bother.
No sudden changes: We have set procedures for payments and sharing information. For instance, if there are fees to be paid, you will have received official invoices or notices about them. We won’t suddenly change our bank account and inform you by a simple email. If anything ever had to change (which is highly unlikely), we would confirm it through multiple channels (and never at the last minute). As a rule, treat any “change of bank details” message with extreme skepticism – and reach out to us directly if you see one.
Data protection and privacy: When we handle your mortgage application, we also handle a lot of personal data. We protect this with encryption and follow GDPR guidelines strictly. So if we ever need to verify you (say, on a phone call), we might ask security questions – but these will be ones you’d expect and have answers to (like parts of your address or birth date), never things like your passwords. And we’ll only do it to confirm we’re really speaking to you. You will never be asked to verify us by providing your secure info – it should always be the other way around!
Updates on your terms: If you’re remortgaging or switching deals, we’ll keep you updated through formal offer documents and confirmation letters. Be wary of any communication that comes mid-process telling you to pay something extra or that your deal fell through and you need to pay a “penalty” – especially if we haven’t discussed it in person or you can’t find a record of it in our prior correspondence. Always cross-reference any new instruction with the advisor you’ve been dealing with at our firm.
In short, when in doubt, pause and verify. Use known contact details to reach out and confirm any request. We are here to help, and part of our job is making sure you feel secure in your mortgage journey.
Verifying Law Firm Bank Details During Conveyancing
One of the most critical moments is when you’re about to send huge sums for a deposit or final payment to your solicitor or conveyancer. This is when scammers often try to pounce. Here’s how to stay safe when transferring money during a home purchase:
- Get the correct account details early: At the very start of the process, ask your solicitor’s office for their bank account details in person or over a trusted phone number. Many law firms will give you a printed document with their account info. Keep it in a safe place. Also agree on how any change would be communicated (in almost all cases, it shouldn’t change at all).
- Assume details won’t change: As noted, it’s extremely rare for a law firm to change their bank account midway through a transaction. So if you do get an email claiming a change, treat it as likely fraudulent. Don’t use any contact info in that email. Instead, call your solicitor’s main office number (the one you can find on Google or on your original paperwork) and check directly. Nine times out of ten, they’ll tell you no, that email was fake.
- Always call to confirm before sending money: This cannot be stressed enough. Before you transfer a large sum, call your solicitor on a known, verified phone number to double-check the account name, sort code, and account number. Yes, it might feel repetitive, but taking a few minutes to do this can save you from losing tens of thousands of pounds. Fraud experts say you should never rely solely on an emailed account number – pick up the phone and confirm with a human being at the firm.
- Consider a small test payment: If you’re especially nervous (and it’s a good thing to be, given the stakes), you can send a small amount first – like £1 or £10 – to the solicitor’s account and then confirm with them that it arrived. Once they affirm receipt in the correct account, you can send the rest. This way, if something’s wrong, you only lose a trivial sum, not your whole deposit.
- Beware of phone number tricks: Ideally, call the solicitor’s number that you already have (from their official website, or a business card). Don’t trust a phone number that was emailed to you in a suspicious message. Some scammers will say “Call us to confirm” but give you their number! Stick to the number you know is legit. And when you call, if someone answers and immediately “confirms” the new details without checking your file – be wary. A real firm will verify who they are talking to as well, and typically, they aren’t expecting their details to change either.
- Don’t be shy or hurried: This is your money and your home on the line. If an email or caller pressures you (“We really need you to send it today, or you’ll miss the completion!”), take a step back. Fraudsters rely on panic. A genuine solicitor will never object to you verifying payment details – they actually often advise you to! Some firms even include warnings in their emails like “Our bank details will not change. If you receive any communication stating otherwise, call us.” Heed those warnings. No reputable lawyer will rush you to send money without verification.
By following these steps, you can dramatically reduce the risk of being caught by a payment diversion scam. Yes, it adds a bit of extra time, but it’s well worth it for peace of mind. Can you afford to lose your entire deposit or purchase money? Of course not – so double-check everything.
Stay Vigilant and Informed
Fraudsters are unfortunately a part of our financial world, but with knowledge and caution, you can outsmart them. Remember that scams can happen to anyone – fraudsters don’t just target the naive; they target the busy, the stressed, and the trusting. By staying informed about their tactics, you’ve already taken a big step toward protecting yourself.
Let’s recap a few key points in plain English:
- Never trust unexpected instructions – always verify by contacting the person or company directly on a known number or in person.
- No legitimate broker, bank, or solicitor will be offended if you verify them. They expect it these days! It’s okay to be a little paranoid when it comes to large financial transactions.
- Guard your personal info. Don’t give out login details, PINs, or passcodes. Your bank/broker will never ask for those in an email or text.
- Take your time. Even if you’re excited to get the deal done, take five and think before responding to any urgent request. A scam can unravel if you pause and scrutinize it.
- Use available resources. Check the FCA Register to ensure any financial firm contacting you is real. Read up on the latest scams (Action Fraud and UK Finance often publish warnings and fraud statistics). Knowledge is power.
If despite all precautions, you realize something’s wrong or you’ve been duped, act immediately. Contact your bank right away – banks have fraud departments that might freeze or recover funds if alerted quickly. Then report the incident to Action Fraud (the UK’s national fraud reporting centre). Reporting not only helps possibly catch the criminals, but it also provides support and advice for victims. You should also inform your solicitor or broker if the scam involved them or their likeness, so they can warn other clients.
Above all, don’t lose heart. Buying a home or refinancing should be a positive experience. By staying vigilant and following the guidance in this article, you can keep it that way. Scammers rely on secrecy and haste – so we defeat them with openness and caution. Keep your eyes open, trust your instincts, and you will safeguard your dream home from these fraudsters.
Stay safe out there, and happy homebuying!
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
