Solicitors are being warned to be on their guard after fraudsters attempted to steal money from Scottish lawyers' client accounts.


The warning from the Law Society's fraud intelligence unit (FIU) followed the Law Society of Scotland's notification to lawyers north of the border that, after several reported incidents of attempted client account fraud using direct debits on principal client bank accounts, law firms should make sure those accounts cannot be subject to direct debits or standing orders.



Standing orders had been submitted to certain Scottish law firms' banks requesting payment of £27,000 to a limited company, followed by monthly payments of £500.



The FIU's Barrie Mayne said the client accounts were saved by swift action by the banks. 'Fortunately, the bank concerned in both situations thought it odd that a standing order should be created on a client bank account,' he said. The banks then alerted the law firms.



Mr Mayne added: 'It is clear from enquiries made that the quality of the signatures produced were excellent and that the perpetrators must have held copies of the original signatures, possibly through client bank account cheques, which would provide the necessary detail to perpetrate this type of fraud.' Lawyers should be on their guard against this kind of fraud, he said.



The Law Society of Scotland issues specific guidelines against allowing direct debits or standing orders, and this would 'similarly not be permitted' within England and Wales, said Mr Mayne. Solicitors who become aware that a fraud may have taken place should contact the FIU, tel: 01926 439673.



Rupert White