The Law Society has issued a practice note that provides detailed advice on the regulatory and legal requirements that apply when a firm's client account has fallen victim to scammers
The new practice note also contains guidance on how to overcome problems that might otherwise lead to the firm's failure and forced closure.
Firms holding client accounts are vulnerable to the risk of theft of confidential data, which could lead to the theft of client money held in client accounts. Firms of all sizes can be targeted and the effect on the scammed firm can be extremely serious both financially and reputationally.
Managing partners, practice managers and staff of firms that hold a client account must immediately take certain actions if they find or suspect that the firm has been the victim of a scam resulting in their client account being compromised. The Law Society's practice note should also be read by compliance officers for legal practice (COLP) and compliance officers for finance and administration (COFA).