Bogus Law Firm Promoting Inheritance Scam in South Australia – Spotting the Warning Signs

Background

Regrettably, there are times when criminals will hold themselves out to be solicitors in an attempt to defraud members of the public and take their money. While the various Law Societies do what they can to prevent this from happening, it is important that people are aware of the risks and know how to avoid potential fraud.

South Australia false solicitor scam

It was recently reported (Law firm scam infiltrating South Australia market (Lawyers Weekly 8^th July 2019)) that the South Australia Law Society has warned of a fraudulent website purporting to be a firm of solicitors which is targeting the public. Members of the public have been receiving emails with instructions for the recipients to follow so that they can claim an inheritance from a deceased relative. 

The South Australia Law Society President highlighted several points in respect of the scam:

• The email set out instructions for the recipient to follow to claim an inheritance from a deceased relative;

• The email requested personal information about the recipient to commence the process and attached a fabricated funds release application form;

• It provides a link to a website that looks like a genuine firm of solicitors’ site but is fraudulent;

• The site included images and biographies of genuine South Australian lawyers;

• The email contains language that should raise suspicions but might be misunderstood for legal jargon by the uninitiated;

• There is a lack of detail in the communication: for example, the deceased relative is not named;

• There are instructions for the recipient to follow, but this is not how client-lawyer relationships work which commence with the client instructing the solicitor following the provision of advice;

• Unsolicited messages that include a reward for following instructions are a warning sign;

• Do not respond to emails or click on links if uncertain of the veracity of the email.

Of course, these scams are not confined to South Australia, nor are they anything new. In 2014, it was reported that the Solicitors Regulation Authority in England were receiving “more and more reports” of fictitious law firms. One example is of a firm calling itself Dovernors, supposedly an internationally recognised law firm based in London, included pictures of real lawyers but “copied and pasted” from a law firm in the US. Some of the text on the website was lifted from genuine firms, adding an air of authority to the fraud.

How to spot a scam solicitor

Below are some of the ways of being sure that a solicitor is indeed who they say they are.

• Check the firm is a legitimate law firm. There are a number of ways to do this, but it is not unusual for fraudsters to use the name of a genuine firm, so this is far from a sufficient check in itself.

• Don’t always believe what you see. Just because a supposed law firm has a professional looking site, does not mean that they can be trusted. Scam law firms can create authoritative looking sites promoting their services and often replicating the websites of real law firms, in the hope of deceiving members of the public.

• Did the solicitor ask to check your identity? A new client of a solicitor is required to prove their identity to protect against potential money laundering. If this step is skipped it should be a warning sign.

• Are they aggressively seeking payment? Criminals involved in scams may ask for immediate payment over the phone or request payment details via email. Never be pressurised into making a payment.

• Genuine law firms will follow the correct process and provide an itemised invoice or bill. Never send money or give credit card details or copies of personal documents to anyone that is not known or trusted.

• Watch out for bad grammar and poorly written communications. Letters and emails sent by the fraudsters may often seem unprofessional, poorly written, and contain spelling and grammatical errors. If you notice any of these signs in a communication, which claims to be from a law firm or solicitor, there is every chance they are not who they say they are.

• Seek advice from an independent professional such as a known lawyer if in any doubt. 

How prevalent are such scams?

The Australian Competition & Consumer Commission’s website (Scamwatch) provides statistics on inheritance scams. For June 2019, there were 220 reports with recorded losses of $90355. The delivery methods were principally text (36.8%), mail (23.6%) and email (21.8%).

More advance fee frauds

A false inheritance is the most frequently used scam, with letters, texts or emails advising that the recipient is entitled to a share in the estate of a possibly wealthy but distant relative. Usually, there will be a request for a fee to cover expenses before a distribution can be made.

Other variations of the “advance fee” frauds can include an overseas lottery win that requires payment of overseas tax before any winnings can be released.  One example of this included the name of a real, indeed well-known firm and a genuinely employed solicitor of the firm, but the email was from a Gmail account.

Further variants of this type of fraud include the suggestion that the recipient is entitled to a grant from the government or a charity; or an entitlement to a compensation claim from an accident.

The name of the firm used may be false or taken from a genuine firm though possibly based in a different city or out of state.

If in doubt, never contact the source via the details provided by them.

Contact Szabo & Associates Solicitors in Surry Hills, Sydney, NSW

Szabo & Associates Solicitors can offer expert advice on a range of legal matters including inheritance issues, estate planning, Power of Attorney, and making, updating or contesting a Will. Please call us on 02 9281 5088 or fill in the online contact form.