There is a significant increase in fund transfer fraud, but these losses may be preventable by exercising appropriate due diligence when disbursing funds to clients.

Please use the following list to verify all payment instructions, especially when payment instructions are changed prior to closing or delivery of funds:

1. Always call your client to verify payment instructions using a trusted number. Phone the number in your file that you received from the client when you opened the file.
2. Never email a client, opposing counsel or any other party to verify payment instructions.
3. Implement a funds transfer protocol to be used in all cases, no matter the amount. An example of one such protocol is the checklist prepared by the BC Lawyers Indemnity Fund.
4. Break the email chain. The person verifying banking information should never accept or send an email confirming payment instructions have been verified because fraudsters can impersonate lawyers and staff alike.
5. Never use the contact information provided in the instructing or confirming email because a fraudulent email will often contain a fraudulent phone number.
6. Educate yourself and your staff about preventing and detecting cyber and social engineering fraud.

If you believe you have been the victim of a funds transfer fraud, you should immediately notify your bank and request a recall of the transferred funds; contact your IT department and cyber insurer to ensure the threat has been removed from your systems; and report any potential loss of client trust funds to the Lawyers Insurance Programme.

View loss prevention tips here.

Posted: 8 July 2026