Practical guides 6 min read

Verification of Payee for Law Firms and Client Accounts

When a law firm releases completion funds or returns a client balance, the amounts are large and the margin for error is zero. Verification of Payee confirms the destination account before these high-stakes payments leave the client account.

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Verification of Payee for Law Firms and Client Accounts

Key takeaways

  • Law firms move large sums through client and escrow accounts.
  • A single misdirected payment can be catastrophic and hard to recover.
  • VoP confirms the destination account name before high-value releases.

Law firms are entrusted with client money — completion funds, settlements, escrow balances — that can run to very large sums. Criminals know this, which is why the legal sector is heavily targeted by payment-redirection fraud, especially around property completions.

Why the stakes are so high

A redirected completion payment can mean a client loses their house deposit and the firm faces severe liability. Unlike everyday payments, there is often no second chance to recover the funds. Verifying the payee before release is one of the strongest controls available.

No room for error

For client-account payments, a Verification of Payee 'no match' should be a hard stop. The cost of pausing to confirm is trivial next to the cost of a misdirected completion.

Where VoP fits

  1. 1 Verify the destination account whenever payment details are received or changed.
  2. 2 Confirm changes via a known, independent channel — never the email that sent them.
  3. 3 Treat a mismatch on a high-value release as a hard stop.
  4. 4 Log the VoP outcome against the matter for compliance evidence.

Protecting client money

RoxPay's Verification of Payee gives legal finance teams a real-time name check to confirm client-account and escrow payments reach the right destination, every time.

FAQ

Frequently asked

They move large sums through client and escrow accounts where a single misdirected payment can be catastrophic. VoP confirms the destination account name before high-value releases.

Very. Property completions are a prime target for redirection fraud, and verifying the payee before releasing funds is one of the strongest safeguards.

For high-value client-account payments, a 'no match' should be a hard stop pending independent confirmation through a known channel.

Safeguard client-account payments

Talk to RoxPay about Verification of Payee for client and escrow accounts.