April 25, 2022
Vigilant Lawyer Avoids New Twist on Old Scam 

ALIA is warning lawyers about a new twist on bad cheque scams after a Calgary lawyer reported a fraudster contacted them through a referral from a third party.

The fraudster attempted to scam the lawyer by posing as an overseas client seeking to purchase a house in Calgary. The new twist is the fraudster contacted the lawyer through a referral list of lawyers provided by an individual in the real estate industry. ALIA is concerned that lawyer referrals by third parties involving fraudulent matters may help give such scams a veneer of credibility.

Fortunately, the vigilant lawyer quickly recognized several red flags. In the first and only email, the scammer requested contact by email only and asked the lawyer to start the purchase process, stating their broker would send a certified cheque to cover the lawyer’s service fees and 90% of the down payment. The fraudster also wanted the inspection of the house contingent on the purchase, and the inspector paid through the lawyer’s trust account. Finally, the fraudster wanted the real estate offer emailed through a DocuSign format as they said they had no access to a printer.

This is a bad cheque scam that is presented as a legal matter requiring the service of a lawyer. These scams are designed to trick lawyers into wiring funds from their trust accounts to the seller after depositing a counterfeit cheque received as payment from the buyer, who is part of the fraud. After the lawyer sends the funds, the cheque is discovered to be bad, and the lawyer is left with a shortage in their trust account.

An explanation of typical bad cheque scams, including red flags and actions that can help firms protect themselves, can be found here. Learn how to Recognize, Avoid and Protect Yourself Against Fraud. For tips to avoid being victimized, read our list of Red Flags.

ALIA remains grateful to Alberta lawyers and firms for their continued reports of potentially fraudulent activities and for keeping us on our toes.

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ALIA does not provide legal advice. ALIAdvisory notices, ALIAlerts and the content on ALIA’s website, notices, blogs, correspondence and any other communications are provided for general information purposes only and do not constitute legal or other professional advice or an opinion of any kind. This information is not a replacement for specific legal advice and does not create a solicitor-client relationship.

ALIA may provide links to third-party websites. Links are provided for convenience only; ALIA does not vet or endorse the information contained in linked websites or guarantee its accuracy, timeliness or fitness for a particular purpose.

If you believe you have been targeted by potentially fraudulent activity, please contact ALIAlert.
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