A campaign by the Solicitors Regulation Authority to target solicitors involved in property fraud has saved lenders £15-20m over the past nine months, the SRA claimed this week.

Its inspectors have made emergency inspections of firms where property fraud was suspected and the SRA has given guidance to solicitors who might become involved in such transactions unwittingly.

The campaign followed concern about rising levels of property fraud. SRA figures showed that reports of suspected property fraud increased from 85 in 2005 to 356 in 2008, and it dealt with more than 400 reports in 2009.

In 2009 the SRA completed 106 investigations into firms where there was suspected misconduct in relation to mortgages or property. Of these, 22 firms have been closed down by the SRA, 24 cases have been referred to the police for investigation and 30 cases have been referred to the Solicitors Disciplinary Tribunal.

The SRA has issued advice and warnings to all solicitors’ firms, alerting them to the warning signs of suspicious transactions, and reminding them of their obligations to ensure they do not become involved and to report any suspicions.

Steve Wilmott, head of the SRA’s fraud and confidential intelligence bureau, said: ‘Last year the SRA stepped up its work to prevent, deter and tackle mortgage fraud. We’ve recruited two dedicated fraud officers, increasing our fraud unit to 18.

‘Mortgage fraud is a serious issue for homeowners and lenders. We are working closely with major lenders and the police to share intelligence and take prompt action.’

Dan Watkins, managing director of mortgages for Lloyds Banking Group, said: ‘The financial services industry faces a serious and continued threat of mortgage fraud that is orchestrated by rogue solicitors. Lloyds Banking Group supports all efforts that are made to combat this threat.’

Detective superintendent Robert Wishart of the City of London Police said: ‘We are committed to working closely with the SRA during 2010 and beyond to target corrupt solicitors who we believe are a significant enabler of property fraud.

‘Working in collaboration will help us to better understand the threats and give us the opportunity to take preventative and enforcement action to protect the financial community.'