As the risk of wire and title fraud increases, the discussion around the problem in the industry grows louder.
Earlier this year at MBA Tech 2022, the Mortgage Bankers Association held a panel that included title industry executives, lender risk management executives and fintech risk vendors discussing wire and title fraud. The panel focused on how to get ahead of the risk.
Organizations such as the National Association of Realtors (NAR) are now reporting on wire fraud consistently. NAR’s online wire fraud resource site cites the FBI’s Internet Crime Center (IC3) data in saying that on average, 2,300+ complaints of wire fraud have occurred daily over the past five years.
The Consumer Financial Protection Bureau (CFPB) has worked with trade organizations such as the American Land Title Association (ALTA) to create educational videos to inform stakeholders of the risks of wire and title fraud and what to look for in email communications.
And the IC3 now highlights real estate wire fraud as one of the largest white-collar crimes in terms of occurrence and impact, while recognizing that its data is based on what has been reported and many of the related losses and risks are not reported or captured by the FBI.
Wire and title fraud risk reaches new highs
The call for more awareness and education around wire and title fraud risk is timely, as the risk only increases.
According to a Q3 analysis by MISMO-certified wire and prevention…
