Kord launches custody network to cut law firm fraud

Kord has launched Kord Custody, a payment network with a dedicated sort code for regulated legal firms in the UK. The 04-10-26 sort code is reserved exclusively for verified law firms.

The launch addresses a long-standing weakness in legal and property transactions, where firms often send large sums under time pressure without a built-in way to confirm that the receiving account belongs to the solicitor involved in the deal.

Every account using the new sort code is assigned to a regulated legal firm that has completed Kord's onboarding and verification process. This is intended to give counterparties a way to identify a trusted recipient before sending client money.

Property transactions have become a particular area of concern for payment diversion fraud. Kord cited reported conveyancing fraud losses of £11.7 million in 2024/25, with residential victims losing an average of £78,393.

The network also changes settlement timing. Payments can settle at any time, including weekends, rather than being tied to standard banking hours that have long shaped the completion of property purchases and other legal matters.

According to Kord, client funds on the system are safeguarded by ClearBank under Financial Conduct Authority safeguarding rules. Accounts using the 04-10-26 sort code can receive payments through Faster Payments, CHAPS and BACS.

Fraud risk

Legal transactions have historically relied on banking infrastructure built for general payment flows rather than legal settlements. As a result, law firms often handle high-value transfers in narrow completion windows, especially on Friday afternoons, when delays and uncertainty can increase operational pressure and create openings for fraud.

"Buying a home or settling a major commercial matter should not depend on whether a bank is open. This launch marks the moment legal transactions leave banking hours behind. Crucially, it provides enhanced security alongside greater operational efficiency. Fraudsters often exploit uncertainty, but our settlement network embeds trust and verification into each transaction, helping end Friday afternoon fraud. The legal sector finally has infrastructure designed specifically for its needs," said James Owusu, Chief Executive Officer and Founder of Kord.

Kord positions the new service as part of a wider offering to regulated sectors. It already provides products for client verification, eligibility checks and payments, and said the custody network adds another layer for firms moving high-value client money.

"Kord Custody sits alongside Kord's existing client verification (Checkboard), eligibility (Kord Data), and secure payments (Kord Pay) propositions, supplying the missing link for law firms to enable high-value transactions, backed by a full audit. This gives our customers a full-service offering that is unique in the market, providing assurance that money is moving safely and securely from one correct account to another," Steve Carle, Board Director at Kord, said:.

Growth backdrop

The rollout comes after Kord raised £6.4 million in a Series A funding round and reported sevenfold revenue growth over the last year. The business has raised £9.4 million in total to date.

Kord operates in several regulated markets, including legal services, financial services, and estate and letting agencies. Its consumer-facing app is known as Checkboard.

The new sort code is available to eligible regulated law firms across the UK. In addition to bank transfer rails, Kord also supports card payments and digital wallets, including Apple Pay and Google Pay.

Kiu Kim, Investment Director at Beringea and Board Director at Kord, said: "Client money sits at the centre of a law firm's risk, and the infrastructure managing it hasn't kept pace with regulation. Kord Custody removes that risk at source rather than insuring against it after the fact, and is the kind of category-defining product we backed Kord to build."