---
title: "Completion money stolen by fraudsters: can you sue your conveyancer?"
url: https://professionalnegligenceclaimsolicitors.co.uk/completion-money-stolen-fraudsters-sue-conveyancer/
date: 2026-10-30
modified: 2026-10-30
lang: en
author: "pncs"
description: "Yes, in many cases you can sue. If your conveyancer paid your completion money to a fraudster, the firm has usually broken the trust on which it held your money and must put it back, even where nobody at the firm acted dishonestly. If you sent the money yourself after a fake email, the claim is harder, and it depends on whether the firm warned you and whether it kept its own systems secure."
categories:
  - "conveyancer"
  - "Negligent Solicitor"
  - "property negligence"
tags:
  - "APP fraud reimbursement"
  - "breach of trust"
  - "client account"
  - "completion money stolen"
  - "conveyancer negligence"
  - "conveyancing fraud"
  - "email interception fraud"
  - "Friday afternoon fraud"
  - "section 1(1) Law Reform (Contributory Negligence) Act 1945"
  - "section 1(2) Third Parties (Rights against Insurers) Act 2010"
  - "section 21(3) Limitation Act 1980"
  - "section 61 Trustee Act 1925"
  - "section 85(1) Finance Act 2003"
  - "solicitor negligence"
  - "SRA Accounts Rules rule 5.1"
  - "SRA Accounts Rules rule 6.1"
  - "SRA Compensation Fund"
image: https://professionalnegligenceclaimsolicitors.co.uk/wp-content/uploads/london_victorian_front_door-1024x576.webp
word_count: 2620
---

# Completion money stolen by fraudsters: can you sue your conveyancer?

**Yes, in many cases you can sue. If your conveyancer paid your completion money to a fraudster, the firm has usually broken the trust on which it held your money and must put it back, even where nobody at the firm acted dishonestly. If you sent the money yourself after a fake email, the claim is harder, and it depends on whether the firm warned you and whether it kept its own systems secure.**

The people who ask this question are usually buyers who watched a deposit or a full purchase price vanish on completion day, or sellers whose sale proceeds never arrived. Most of them assume the loss is theirs because they were tricked, or that only the bank can help. The answer turns on a narrower question: where was the money at the moment it was stolen? Our [guide to suing your conveyancing solicitor](https://professionalnegligenceclaimsolicitors.co.uk/conveyancing-negligence-suing-your-solicitor/) covers the wider grounds for a claim, and our page on [claims against negligent licensed conveyancers](https://professionalnegligenceclaimsolicitors.co.uk/negligent-licenced-conveyancer-property-lawyer-clc-compensation-free-advice/) applies where your firm was not a solicitors' practice.

### Want legal advice on the merits of your case?
Your legal enquiry goes immediately to our PN litigation team in Middle Temple, London. We can't take on low value cases or give free legal advice - our minimum fee is £1750 +VAT for a conference with a solicitor and barrister. Call us on +442071830529.

[Check My Case Now ✔](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/)

## Two Kinds of Completion Fraud

In the first kind, your money reached the firm's client account and the firm then sent it to the wrong place. A fraudster may have hacked an email thread and posed as the other side's solicitor with "updated" bank details, or set up a bogus branch office of a genuine firm. In the second kind, the money never reached your conveyancer at all. You received an email that looked as if it came from the firm, it gave you account details, and you transferred the funds directly to a criminal. Our page on [claims for losses caused by cyber attacks and data breaches](https://professionalnegligenceclaimsolicitors.co.uk/negligent-error-cybersecurity-confidential-data-compensation-advice-2/) covers the wider background. The legal routes for these two frauds are very different.

The distinction decides the cause of action, the defences open to the firm and how the loss is valued. Our explanation of [how compensation is calculated in a professional negligence claim](https://professionalnegligenceclaimsolicitors.co.uk/how-is-compensation-calculated-in-a-professional-negligence-claim/) sets out the general approach. If you were the seller and your proceeds went astray, the analysis depends on which firm held the money when it was diverted. Where it was not your own firm, read our note on [when a third party can sue a professional for negligence](https://professionalnegligenceclaimsolicitors.co.uk/can-a-third-party-sue-a-professional-for-negligence-advice/).

## When Your Conveyancer Sent the Money to a Fraudster

Money in a solicitor's client account is held on trust for the client. Rule 5.1 of the SRA Accounts Rules says the firm may only withdraw client money "for the purpose for which it is being held" or "following receipt of instructions from the client". Paying your purchase money to a criminal serves neither purpose. Rule 6.1 then requires that "any money improperly withheld or withdrawn from a client account must be immediately paid into the account or replaced as appropriate." Our article on [breach of trust claims against solicitors after property fraud](https://lexlaw.co.uk/solicitors-london/property-fraud-breach-of-trust-claims-against-solicitors/) explains how these claims usually arise.

That article discusses *Davisons Solicitors (a Firm) v Nationwide Building Society* [2012] EWCA Civ 1626. A fraudster had posed as the branch office of a genuine firm, and the defendant firm sent a mortgage advance to it before completion. The Court of Appeal held that parting with the money in those circumstances was a breach of trust, and that the firm's compliance with its other obligations was no defence to that finding. A breach of trust claim of this kind does not require you to prove carelessness first, which is why it is often the stronger route. Our page on [negligence claims against lawyers](https://lexlaw.co.uk/practice-areas/professional-negligence-solicitors-london/professional-negligence-claim-against-lawyers-barristers/) explains how we frame claims against law firms.

## Can the Firm Rely on Section 61 of the Trustee Act 1925?

A firm that has paid money away in breach of trust will often ask the court to excuse it. Section 61 of the Trustee Act 1925 allows the court to relieve a trustee "either wholly or partly" from personal liability where the trustee "has acted honestly and reasonably, and ought fairly to be excused for the breach of trust". In *Davisons* the firm was in fact relieved, which shows that the defence is a real one and has to be met with evidence. The burden of making out the defence sits with the firm. Our article on [whether your solicitor has to tell you about a mistake](https://professionalnegligenceclaimsolicitors.co.uk/solicitor-mistake-duty-tell-client/) explains what a firm should disclose once something has gone wrong.

Relief turns on detail. Did the firm check changed bank details by telephone, using a number it already held, or did it rely on the same email chain the fraudster controlled? Did it follow its own procedures, and did it ignore warning signs such as a last-minute change of account? The SRA has published warning notices on bogus law firms and identity theft, so a firm that overlooked well-known warning signs will find it harder to say it acted reasonably. Where an individual employee made the payment, our page on [vicarious liability](https://professionalnegligenceclaimsolicitors.co.uk/vicarious-liability-claims-solicitors/) explains how a firm answers for its staff.

## What If You Paid the Fraudster Yourself?

If the money never entered client account, no trust arose over it, and the claim must be brought in negligence or for breach of the retainer. The questions are factual. Did the firm warn you at the outset never to act on bank details sent by email? Was it the firm's own mailbox that was compromised, so that the fraudster wrote from inside a genuine thread? Did someone at the firm ignore a call or email asking them to confirm the account? Our page on [solicitor negligence claims](https://professionalnegligenceclaimsolicitors.co.uk/sue-negligent-solicitor-law-firm/) covers the duty a firm owes its clients.

Most firms now give a written fraud warning in the client care letter. Where that warning was clear and you went ahead anyway, the claim becomes difficult. Where the firm's own systems were breached, or its staff confirmed false details when you checked, the position is very different. Our article on [a solicitor's duty to warn clients of risks](https://lexlaw.co.uk/solicitors-london/lawyers-professional-negligence-claims-solicitors-duty-to-warn-clients-advice/) explains how far that duty reaches.

## How Much Blame Can Be Shifted Onto You?

In a negligence claim the firm will usually argue that you share responsibility. Section 1(1) of the Law Reform (Contributory Negligence) Act 1945 provides that your own fault will not defeat the claim. The damages "shall be reduced to such extent as the court thinks just and equitable having regard to the claimant's share in the responsibility for the damage". A buyer who ignored a clear written warning may face a substantial reduction. A buyer who telephoned the firm and was given false reassurance may face none. Our article on [how professional negligence compensation is calculated](https://professionalnegligenceclaimsolicitors.co.uk/how-is-compensation-calculated-in-a-professional-negligence-claim/) explains how deductions of this kind are applied.

Where the claim is put as a breach of trust, your own conduct is generally argued through the section 61 question, and a percentage reduction under the 1945 Act is less likely to apply. How the claim is framed can therefore change what you recover. If your current advisers have not considered this, a [fixed fee second opinion on your negligence claim](https://professionalnegligenceclaimsolicitors.co.uk/second-opinion-legal-fixed-fee-new-representation-litigation-advice/) is worth having before any letter of claim goes out.

## Stolen Stamp Duty Money Is Still Owed to HMRC

Completion funds often include the Stamp Duty Land Tax that the firm is meant to pay for you. If that money is diverted, the liability does not move to the firm. Section 85(1) of the Finance Act 2003 is blunt: "The purchaser is liable to pay the tax in respect of a chargeable transaction." Under section 76(1) the land transaction return is due within 14 days after the effective date, and section 86(1) requires the tax to be paid no later than the filing date for that return. Our article on [stamp duty mistakes by your conveyancer](https://professionalnegligenceclaimsolicitors.co.uk/stamp-duty-mistake-by-your-conveyancer-can-you-claim-compensation/) covers the claim for the tax-related loss.

Late payment can bring penalties and interest, which you may then claim from the firm as part of your loss. Our page on [HMRC penalties](https://taxdisputes.co.uk/hmrc-penalties/) explains how they are charged. If you cannot pay the tax again straight away, our guide to [HMRC Time to Pay arrangements](https://taxdisputes.co.uk/2026/04/hmrc-time-to-pay-arrangements-explained/) sets out how to approach HMRC before enforcement begins.

## Bank, Police or Conveyancer?

People searching for help after conveyancing fraud often land on pages about criminal fraud charges or police reporting. Those processes may punish the fraudster, but they rarely return the money. Our page on [fraud allegations and private prosecutions](https://lexlaw.co.uk/practice-areas/private-prosecution-solicitors-barristers-lawyers-london/fraud-solicitors-london/) explains that side of the law. Report the payment to your own bank immediately. Under the reimbursement protections introduced on 7 October 2024, UK transfers made by Faster Payments or CHAPS are covered up to £85,000 per claim, provided you report within 13 months of the payment, unless you were complicit in the fraud or grossly negligent.

These routes run alongside a claim against the conveyancer, and anything you recover elsewhere will be credited against it. Where a large sum has gone, the receiving bank can be made to disclose where it went, as explained in our article on [Norwich Pharmacal disclosure from a bank](https://lexlaw.co.uk/solicitors-london/pre-action-disclosure-norwich-pharmacal-relief-bank-pre-action-protocol-costs-litigation/). If the funds can still be traced, our page on [obtaining an urgent freezing order](https://lexlaw.co.uk/urgent-injunctions-obtain-freezing-order-mareva-preserve-assets-litigation-solicitor-legal-advice/) explains how they can be held before they move again.

## If the Conveyancing Firm Has Collapsed

A large fraud loss can push a small practice into insolvency. That does not usually end your claim, because the firm's professional indemnity insurance survives it. Section 1(2) of the Third Parties (Rights against Insurers) Act 2010 provides that the insolvent firm's rights against its insurer "are transferred to and vest in the person to whom the liability is or was incurred". Our guide to [claiming against an insolvent professional's insurer](https://professionalnegligenceclaimsolicitors.co.uk/insolvent-professional-claim-against-their-insurer/) explains the procedure, and our report on [an SRA intervention following a law firm's winding up order](https://windinguppetitionsolicitors.co.uk/follett-stock-llp-intervened-by-sra-following-winding-up-order/) shows what happens to client files and money when a firm fails.

The SRA Compensation Fund is a separate, discretionary remedy. It responds where money has been stolen or not accounted for, or where a firm had no insurance, and applications must be made within twelve months of when you knew or should have known of the loss. Our article on [what to do when a solicitor's firm has closed or collapsed](https://professionalnegligenceclaimsolicitors.co.uk/solicitors-firm-closed-or-collapsed-can-you-still-claim/) compares the routes. Proving as an ordinary unsecured creditor in the firm's insolvency is usually the weakest of them, as our [guide to creditor rights in UK insolvency](https://windinguppetitionsolicitors.co.uk/creditor-rights-in-uk-insolvency-an-all-encompassing-guide-for-2025/) explains.

## Time Limits That Apply to You

A negligence claim in tort must be brought within six years of the damage under section 2 of the Limitation Act 1980, and a claim in contract within six years of the breach under section 5. A claim for breach of trust is governed by section 21(3), which provides that it "shall not be brought after the expiration of six years from the date on which the right of action accrued". Our guide to [the limitation period for a professional negligence claim](https://professionalnegligenceclaimsolicitors.co.uk/what-is-the-limitation-period-for-a-professional-negligence-claim/) explains when time starts to run.

Six years sounds generous, but other deadlines are much shorter. The bank reimbursement window is 13 months, the Compensation Fund window is twelve months and the stamp duty return is due within 14 days of completion. Evidence also degrades quickly: email logs are overwritten and staff leave. Treat the first few weeks as the period that decides the claim, and use our [professional negligence case assessment form](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/) to put the facts in front of us while they are fresh.

## First Steps After Completion Money Disappears

Keep every email in its original form, including the fraudulent ones, because the technical headers can show whose mailbox was compromised. Keep your bank statements and the client care letter with any fraud warning it contained. Write down every telephone call with the firm, with dates and times. Then ask the firm for a full copy of its file. Our article on [what should be in a letter of claim for professional negligence](https://professionalnegligenceclaimsolicitors.co.uk/what-should-be-in-a-letter-before-claim-action-for-professional-negligence/) explains how that evidence is used.

Formal claims follow the Pre-Action Protocol for Professional Negligence. Under paragraph 7.1 the firm should acknowledge your Letter of Claim within 21 days, and under paragraph 8.2 it then has three months from that acknowledgment to investigate and respond. Our [guide to pre-action protocols](https://lexlaw.co.uk/pre-action-protocols-guide-conduct-cpr-civil-procedural-rules-before-start-commence-claim-proceedings-consequences-settlement-legal-advice/) explains what happens if either side ignores them. If limitation is close, proceedings may need to be issued first and the protocol completed afterwards.

## How We Can Help

We act for buyers and sellers who have lost completion money through conveyancing fraud, bringing claims for breach of trust and negligence against the firms responsible and their insurers. We do not pursue criminal complaints on your behalf, we do not offer free legal advice or legal aid, and we generally take on substantial matters where the loss justifies High Court litigation. Our page on [claims against negligent solicitors](https://professionalnegligenceclaimsolicitors.co.uk/sue-negligent-solicitor-law-firm/) sets out the work we do against law firms.

We are dual qualified solicitors and barristers with chambers in Middle Temple, next to the Royal Courts of Justice, so the lawyer who assesses your case can also argue it in court. We offer a fixed fee advice conference with both a solicitor and a barrister, at which we review the evidence and tell you plainly whether the claim is worth bringing. You can start by completing our [case assessment form](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/), or read more about our [negligence claims against lawyers](https://lexlaw.co.uk/practice-areas/professional-negligence-solicitors-london/professional-negligence-claim-against-lawyers-barristers/) first.

### Want legal advice on the merits of your case?
Your legal enquiry goes immediately to our PN litigation team in Middle Temple, London. We can't take on low value cases or give free legal advice - our minimum fee is £1750 +VAT for a conference with a solicitor and barrister. Call us on +442071830529.

[Check My Case Now ✔](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/)

*This article is for general information only and does not constitute legal advice. You should take specific legal advice on your own circumstances before taking or refraining from any action.*

### Frequently Asked Questions (FAQs)

Is my conveyancer liable if it paid my completion money to a fraudster?
Usually, yes. Money held in client account is held on trust, and rule 5.1 of the SRA Accounts Rules permits withdrawal only for the purpose for which it is held or on the client's instructions. Paying it to a criminal is generally a breach of trust, and rule 6.1 requires the firm to replace money improperly withdrawn.

Can the firm avoid liability by showing it acted honestly?
Honesty alone is not enough. Under section 61 of the Trustee Act 1925 the court may relieve a trustee only if it "acted honestly and reasonably, and ought fairly to be excused". The firm has to prove both, and a firm that ignored obvious warning signs or skipped its own checks will struggle.

I paid the fraudster myself after a fake email. Can I still sue my conveyancer?
Possibly. Because the money never reached client account, no trust arose over it, so the claim lies in negligence. You will need to show the firm fell short, for example by failing to warn you or by letting its own email system be compromised. Your damages may then be reduced for your own share of responsibility.

Can my compensation be reduced because I was tricked?
In a negligence claim, yes. Section 1(1) of the Law Reform (Contributory Negligence) Act 1945 allows the court to reduce damages to the extent it thinks "just and equitable having regard to the claimant's share in the responsibility for the damage". How large any reduction is depends on the warnings you received and what checks you made.