Each year, as temperatures rise, so does scam activity targeting small businesses, and that includes law firms. Employees are out of the office, firms run leaner operations, and distracted professionals are more likely to click, trust, or process without full review.

Last fall, we warned Oklahoma lawyers about a check scam targeting law firms, especially those handling collections, real estate, and other transactions involving client funds. Unfortunately, this scheme is back. Several attorneys have recently reported receiving counterfeit cashier’s checks from fraudsters posing as new clients.

As before, the scammers engage the firm for help collecting or transferring funds, then send a fraudulent check and request that the firm disburse funds before it bounces.

How the Scam Works

• Initial Contact: A scammer reaches out, often via email, posing as a potential new client needing legal help with a collection, debt resolution, divorce settlement, or real estate transaction.
• Engagement Letter: The scammer may complete a legitimate-looking engagement process, including signed documents and even photo IDs to appear credible.
• Delivery of Funds: They send a cashier’s check or other official-looking instrument and ask the lawyer to deposit it into the trust account.
• Urgent Instructions: Soon after, they request a disbursement or refund (typically a wire transfer) claiming urgency due to a business deal that didn’t go through, overseas move, or a similar excuse for a refund.
• The Bounce: Days or even weeks later, the bank notifies the firm that the cashier’s check was fraudulent. At that point, the wired funds are no longer available, and the firm is responsible for the loss.

Here’s how to protect yourself this summer:

• Slow down fund disbursement: Never release funds from your trust account until the check has fully cleared—not just posted.
• Verify client stories independently: Use known-good contact info and verify identities by phone or secure channels.
• Strengthen internal controls: Use a two-person review process for any trust account disbursement involving new clients or unusual amounts.

If you believe your firm has been targeted or defrauded, report the incident at www.ic3.gov and alert your bank immediately.

We’ve posted more information on how these scams work on our Scams page. And if you missed last week’s tip on phishing, it’s worth reviewing. Many scams start with an email before they ever hit your bank account.