General

Conveyancing scam

The scam, about which the AIIF is getting increasing notifications from conveyancers goes more or less as follows:

The conveyancer is fraudulently requested by someone posing as the seller/his spouse, around the time of registration, to pay the proceeds into a different bank account from the one originally supplied to the conveyancer. The money is paid over and cleared almost immediately.

The AIIF would like anyone who has already fallen for the scam to notify them as soon as possible so that the AIIF can attempt to investigate where these people are getting the information and how the banks are allowing these “clearing” accounts to run.

The following information would be helpful:

  1. The names of the seller and purchaser
  2. The deeds office where the documents were lodged.
  3. If the new banking details were provided before or after prep.
  4. The bond cancellation bank.
  5. The bond registration bank.
  6. The name of the bank into which the payment was incorrectly made.
  7. If the seller signed a document wherein they provided written instructions regarding the payment of the proceeds
  8. If the new banking details were provided via telephone, email, etc.

Ann Bertelsmann | Risk Manager (AIIF)
Aon South Africa (Pty) Ltd | Risk Solutions
ann.bertelsmann@aon.co.za

Reader Comments:

Leeander Govener 25/05/2012:

We always get the sellers to submit a cancelled cheque or bank statement or letter from the bank confirming their banking details and get client to re-sign an Authority for Payment. Also double check the signatures on the Authority from the one that they have already signed

Ann Bertelsmann 29/05/2012:

The AIIF is collating all the information we have received from conveyancers. We hope to get assistance from the Hawks in tracking down the perpetrators as it seems like a national phenomenon. Thank you to those who have sent us information. To those of you who have not yet done so - please send us your information.

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