Buying a property is a daunting enough process without the thought that your hard earned money will be the target of a scam. Unfortunately, wherever large sums of money are involved, there is often someone looking to intercept it. Property transactions are no exception.
Law firms across New Zealand are taking stronger steps to protect you, and comply with the Anti-Money-Laundering and Countering Financing of Terrorism Act (AML/CFT) 2009. Even if you have been a client of Godfreys Law for years, our new measures mean we may still ask to see identification. Here’s why.
Scammers are using law firms and real estate agents to target home buyers. Basically, the scammer will approach a law firm to ask about property conveyancing. Afterwards, they’ll send through an ‘important document’ asking the lawyer to put in their email address and password, which unknowingly gives the scammer access to their account.
Once they have access, the scammer will contact a home buyer on the law firm’s books with a reminder to pay their deposit. The email will include an invoice supposedly from the law firm, but with the scammer’s bank account details in place of the law firm’s Trust Account.
It’s near impossible to recover your money once it’s been paid. Unfortunately New Zealand's Banking Ombudsman Nicola Sladden has seen a 37 per cent rise in scams like these in 2018!
How Are We Keeping You Safe?
This is where the AML/CFT Act comes in. It’s much harder to scam someone if you are forced to use your real identity, by providing authenticated documents in person. The new, stronger security measures we have introduced to comply with the AML/CFT Act help us protect you. Protecting your personal information is our priority. Godfreys Law has a specialist cyber and IT security team who work closely with one of Christchurch’s leading IT firms to monitor our cyber-security, and make sure we have strong defenses.
Sometimes, the weakest point in a company’s cyber-security is the people who operate it. In this scenario described by the Banking Ombudsman, it’s the lawyer or real estate agent who unwittingly gives the scammer their email address and password.
We have our own online systems in place to make sure something like this doesn’t happen at Godfreys Law. Our IT team keeps us updated with the latest scams doing the rounds, and teaches us how to avoid them.
How Can You Protect Yourself From Scams?
Before taking any kind of action online, it’s best to stop, take a deep breath, and check twice.
- Check invoice details. If the bank account detail on an invoice doesn’t match previous banking records, or you have never done business with us before, call our office and ask us to confirm our account number with you verbally.
- Think twice if you are contacted out of the blue – even if the person says they're from a legitimate organisation like your bank or an internet provider.
- Don't respond to phone calls or emails asking for remote access to your computer to fix a problem.
- Legitimate companies will never ask you for your passwords. Use good, strong passwords on online accounts – and don't tell anyone what they are.
- Keep your personal information secure. Think carefully before entering your details online, or giving them to someone.
- A common scam tactic is offering you money or prizes, but you have to make a payment up front to receive it. Ignore all offers like this.
- A good antivirus and up-to-date software will help protect your device from someone trying to access it.
- Be wary of unusual payment requests. Scammers try to use payments that can't be traced such as pre-loaded debit cards or gift cards.
Basically if it seems too good to be true, it probably is. If you’d like to talk to a law firm taking cyber-security seriously, contact the team at Godfreys Law on 03 366 7469.
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