Conveyancing solutions provider LMS has made its anti-fraud tool Bank Account Check to any borrower with an active case via the firm’s panel.
Bank Account Check has been in use for law firms since 2016, and works through four stages: authentication, in which LMS will check that the borrower has an active case; protection, which asks the user to set up a password; a law firm search; and then confirmation after information has been matched.
From that point, the client can be sure that the law firm’s bank details are correct before they transfer funds.
LMS points to FCA research to show that, in 2018, £350m was lost in ‘push payment’ fraud, of which only £83m was able to be returned. In total, 84,624 could count themselves as victims.
It says its tool covers 97 per cent of conveyancing law firm transactions in the UK.
LMS chief executive Nick Chadbourne says: “Deposit fraud can completely derail a borrower’s chance of home ownership, removing years of hard-earned savings in a few seconds. We are therefore delighted to launch our LMS’ Bank Account Check service for borrowers within our target timeframe. It is a good feeling knowing LMS is actively trying to stop this type of fraudulent activity in the market.
“It is important that the industry continues to work together to improve the home buying process at all stages, and we hope borrowers take advantage of the available technology like our Bank Account Check to offer some security against deposit fraud and mitigate risk.”