As lawyers, we spend a lot of time learning as much as possible about the law. But what many of us don't do is become experts in technology or how that technology can be used against us. Yes, scammers are in the legal world as well, just waiting to fool attorneys or deceive attorneys into transferring their money or looking to illegally tap into attorneys' trust accounts.
Our Chicago business and ethics attorney at Ellis Legal explains more below.
You're' Ultimately Responsible
Recognizing and avoiding scams matters; while they may be sympathetic, the ARDC does not see it as an excuse that you were fooled—you are the ultimate guardian of your trust account and ultimately responsible, both legally and as far as your bar license is concerned, for theft that happens from one of your trust accounts.
Cleared and Uncleared Funds
If you have a trust account, always be mindful of funds that are in your trust account but aren't yet available to be used. Those funds haven't cleared, but many attorneys are impatient or under pressure from rushed clients or impending deadlines, so don't wait for the funds to clear. Many attorneys figure that they wouldn't be able to do anything with the funds unless they've cleared.
But that's not true. Many banks will allow you to transfer or wire funds even though they have not cleared.
So, if someone fools you or rushes you into cutting a check or transferring money, the funds that have not cleared aren't there. That means that your trust account is debited for whatever money you use, which leads to a trust account deficit.
Debtor-Creditor Scams
Be wary of "clients" who pressure you to disburse money quickly. Any scenario where person one is sending you funds to disburse to person 2 (usually your "client") should be monitored carefully; these "debtor-creditor" scams using a lawyer's trust account are common. The money looks like it's there, but it's not, so when you disburse it to your "client," you're actually paying that person out of your trust account funds.
Fake Accounts and Emails
Other scams aren't unique to lawyers; things like emails that look like they are from a person or a business, but they are not. Or, emails that say that your trust account has been debited (for example, for a subscription that you never signed up for) are usually scams, looking to get you to devolve personal information or information about your trust account.
Fakes aren't the only problem—the email or account you are sending money to may be a real, actual email or account, but it may just have been hacked by someone other than the actual owner.
Paper Checks
Be wary of your paper checks. The simple act of throwing them away can lead to fraud; it's easy for a wrongdoer to get a check from the trash, duplicate it, and cut a check from your trust account.
Speak with a Chicago business and legal ethics litigation attorney at Ellis Legal at (312) 967-7629 today if you have a problem with the ARDC related to your trust account or any other ethical issue.