Two weeks ago I posted a blog on collaborative family law agreement scams. In that blog I noted a few red flags that may be indicative of a scam, such as the use of generic or universal terms in the initial contact message.

According to the latest bulletin from the Lawyer’s Professional Indemnity Company (LawPRO), the fraudsters are becoming more convincing.

For example, the fraudsters are now sending out personalized email messages with the lawyer’s first and last name at the beginning of the email. The fraudsters even send out follow-up emails inquiring whether the lawyer is willing to assist on the file.

Besides the apparent eagerness to retain the lawyer, the fraudsters are now able to provide colour scans of foreign IDs, including Chinese passports and U.S. driver’s licences. The fraudsters sometimes provide detailed background information and make phone calls that appear to be from local number by using spoof technologies.

In two instances the initial email was drafted to appear as if it were coming from a U.K. lawyer.

To make things worse, two Ontario lawyers who don’t practise family law thought that the emails were legitimate and passed them onto family law lawyers as referrals.

Here’s what LawPRO suggests to avoid becoming a victim of fraud: (emphasis is mine.)

Trust your instincts. If things don’t add up, ask more questions and dig deeper. Get the client on the phone and ask them to provide further background and explanation for anything that is inconsistent or that doesn’t make sense. Have them confirm details in the information they already provided to you and be especially wary if the client is hesitant or unclear on background facts. Don’t be naïve. In reply to our Alert last week, one lawyer said, “I’m relieved to hear you say that because I’m feeling sheepish for not having recognized that this was a scam from the get-go.”

If you have suspicions, carefully check and verify any background details provided to you. Ask for documentation from the client that will confirm details of any information provided to you. You can do a reverse lookup of phone numbers provided to you or that appear on call display; Google any addresses provided to you. Get the names of lawyers who previously acted for the client or ex-spouse, check online databases to verify they are real lawyers and ask for permission to contact them.

Ultimately, getting the retainer funds or payments from the ex-spouse irrevocably wired to your bank account is the only way to really protect yourself from this type of fraud. If these wires are coming from another Canadian financial institution, they should come via the Large Value Transaction System (“LVTS”).  If they are coming from a financial entity outside of Canada, the client or ex-spouse’s bank should make arrangements with your bank to wire the funds to your account.

As an alternative to getting funds wired into your account, tell your client that your firm’s policy is that all funds deposited by cheque or bank draft will be held for 30 days or until your firm is able to get confirmation that the funds have cleared.

Finally, you should terminate the retainer if you remain suspicious that the matter is a fraud.