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How are you preventing wire fraud?

  • 1.  How are you preventing wire fraud?

    Posted 06-21-2021 14:15

    We know wire fraud is a big problem in our industry. I am curious what safeguards you all are taking to reduce or eliminate the risk? 

    Thanks in advance! 

    Perla



    ------------------------------
    Perla Aparicio
    Charlotte NC
    ------------------------------
    ALTA Marketplace


  • 2.  RE: How are you preventing wire fraud?

    Posted 06-22-2021 01:13
    FundingShield - only company providing Wire Fraud  prevention, with $1T processed , providing loss coverage with our assurance certification.  Real time data , real time solution - used by Prime banks, top lenders Nationwide . Only Mismo certified firm for the last 2 plus years 
    Member of FRAUD Committee MBA and Member Risk Committee MBA


    Ike Suri

    Chairman & CEO

    O: (949) 706-6500

    M: (949) 295-8200W: FundingShield.com

     

    Awards recipient of:

          



    Sent from my iPhone



    ALTA Marketplace


  • 3.  RE: How are you preventing wire fraud?

    Posted 06-22-2021 09:01
    We use CertifID to send our wiring instructions to customers and receiving them from customers.   CertifID verifies their identities when logging in, so that is one of their safeguards.  We also have a database we keep in-house to check wiring instructions that are going to payoff lenders.  We initially call to verify that that instructions are correct, list them in our database and our closing team must verify each outgoing wire prior to sending and getting approval.

    ------------------------------
    Tania Burke
    General Manager
    Abstract & Title Guaranty Company, Inc.
    Danville IN
    +1 (317) 745-4300
    ------------------------------

    ALTA Marketplace


  • 4.  RE: How are you preventing wire fraud?

    Posted 08-06-2021 11:17

    Hi Tania, 

    Thank you for your response. I wasn't getting all of the notifications from this thread and I thought no one replied hahaha. Sounds like you have a lot of safeguards in place to make sure you and your clients are protected. Have you looked into any online payment platforms that have those same security processes in place? 



    ------------------------------
    Perla Aparicio
    Charlotte NC
    ------------------------------

    ALTA Marketplace


  • 5.  RE: How are you preventing wire fraud?

    Posted 08-09-2021 09:22
    We have not looked into this much yet.  It is something that we will be discussing in the very near future.

    ------------------------------
    Tania Burke
    General Manager
    Abstract & Title Guaranty Company, Inc.
    Danville IN
    +1 (317) 745-4300
    ------------------------------

    ALTA Marketplace


  • 6.  RE: How are you preventing wire fraud?

    Posted 08-06-2021 10:58

    Thanks, Ike! I'd love to chat with you more about this. Are you going to be at NS3 or ALTA One?

    Feel free to contact me 

    281-468-7019

    perla.aparicio@paymints.io



    ------------------------------
    Perla Aparicio
    Charlotte NC
    ------------------------------

    ALTA Marketplace


  • 7.  RE: How are you preventing wire fraud?

    Posted 06-22-2021 08:56

    Hi Perla,

     

    Here is a quick article called A Layered Approach to Wire Fraud Prevention (https://certifid.com/layered-approach-to-prevention/). This should provide some great tips and best practices to mitigate your risk of wire fraud.

     

    Austin Zahrt

    Austin Zahrt

    Account Executive at CertifID

    616.260.4533 azahrt@CertifID.com

    CertifID

     

     

    ALTA Elite Provide    

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  • 8.  RE: How are you preventing wire fraud?

    Posted 06-22-2021 10:57

    The  most  important  thing  we  do  is  to  have a totally  inflexible  policy  that  we  neither  give  nor  accept  wire  instructions  by  email,  even  so-called  "secure"  email.  We  also  do not  send  wires  out  unless  the  recipient  (or  someone  with  an appropriate  durable  power of attorney  for the recipient)  makes  the  request   on  a  form similar  to  the  attached form developed  for the Massachusetts  Real  Estate  Bar  Association.   See  also,  REBA  Practice  Standard  No. 11. 

     

    The Association  has  also  adopted  the following  Ethical  Standard: REBA Ethical Standard No. 5 REBA Ethical Standard No. 5 Wire Transfer Funds Any attorney who has been asked to wire transfer funds in connection with a closing may, in the case of reasonable doubt as to the authenticity or correctness of the wire instructions, refuse to execute the wire transfer. Adopted November 6, 2017 

     

    See  also  the  elements  of  our  email  signature  set forth  below,

     

     

    WE WILL NEVER SEND YOU WIRE INSTRUCTION BY EMAIL

     

    Henry J. Dane,  J.D., Ph.D
    Dane Brady & Haydon, LLP, Attorneys-at-Law

    PO Box 540 Concord, Massachusetts 01742
    Email:
    hdane@danelaw.com
    Phone: 978-369-8333 Ext. 18
    Fax: 978-369-3106

     

    LINKED-IN PROFILE

     

    Click here to send me a file securely

    Please note:  Our office will be closed from Monday, July 5th through Friday, July 9th in observance of the 4th of July Holiday.

    DB&H

    _____________________________________________________________________________
    PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION
    _____________________________________________________________________________
    This document is intended only for the use of the person to whom it is addressed. It may contain information

    that is privileged, confidential, and exempt from disclosure under applicable law.  If you are not the intended

    recipient, any dissemination, distribution, copying or use of this document is strictly prohibited.  If you have

    received this communication in error, please notify us by reply email to hdane@danelaw.com and erase, delete

    or destroy all copies of the same

     

    PLEASE CALL DANE BRADY  &  HAYDON, LLP   AT 978-369-8333 FOR INSTRUCTIONS BEFORE YOU SEND ANY FUNDS TO OUR OFFICE. 

    BECAUSE OF THE POTENTIAL FOR FRAUD,  PLEASE DO NOT HONOR ANY WIRE INSTRUCTIONS SENT TO YOU BY E-MAIL INCLUDING

    THOSE THAT APPEAR TO COME FROM  OUR OFFICE.   IF YOU REQUEST THAT ANY FUNDS BE SENT BY  WIRE,   WE CAN ONLY ACCEPT

    YOUR INSTRUCTIONS IF GIVEN ON OUR OWN FORM.  NEITHER ORIGINAL INSTRUCTIONS NOR ANY CHANGES WILL BE ACCEPTED

    WHETHER BEFORE OR AFTER THE CLOSING IF DELIVERED BY  E-MAIL (EITHER OPEN OR SECURE). 

     

     

     




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  • 9.  RE: How are you preventing wire fraud?

    Posted 06-22-2021 20:38
    Only accept cashier's checks from buyers . No wires in from buyers . The wire fraud crooks can not intercept a cashiers check . Beat the wire fraudsters at their own game .

    Sent from my iPhone


    ALTA Marketplace


  • 10.  RE: How are you preventing wire fraud?

    Posted 06-23-2021 15:18
    Cashier's checks are scarier to me than wires.  I've had too many fraudulent cashier's checks presented in my office.  At least with wires, we can send the instructions securely with warnings and verify any requests for wires from our clients.

    ------------------------------
    Nancy L. Gusman, Esq., CLTP, NTP
    GusmanLegal, LLC
    Beltsville, MD
    (301)563-9669
    ------------------------------

    ALTA Marketplace


  • 11.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 01:27
    What steps are you taken to prevent wire fraud? Have you created a questionnaire form that has to be file out to verify the receiving party that you can then verify with lenders and attorney?



    ALTA Marketplace


  • 12.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 07:59
    We also do not accept Cashier's checks because our Relocation Sellers require that their proceeds and payoffs be wired before releasing the keys to the Buyers. Cashier's checks have to be deposited AND cleared before they are good funds available to disburse on.

    Kimberly Gilbert-Toelle 
    Raber Law Offices, PLLC
    681-260-6455

    Sent from my BlackBerry - the most secure mobile device



    ALTA Marketplace


  • 13.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 11:35
    Many Cashier's checks are made out to the Buyers or Borrowers in their own name. With new technology, those cashier's checks can via phone, be endorsed and deposited into another account.  What looks like a legitimate cashier's check, has already been cashed. BEWARE!

    ------------------------------
    Jeanine Johnson
    Landrecs.com online title school for the title industry
    Jeanne Johnson & Associates LLC
    Minneapolis MN
    +1 (651) 426-9962
    ------------------------------

    ALTA Marketplace


  • 14.  RE: How are you preventing wire fraud?

    Posted 06-23-2021 20:07

    Cashier's checks had their run of fraudulent activity for a time.  The concern here in South Carolina is a "hard post" to the trust account.  SC, by the way, is a wet close, not escrow state. 

     

    Amy C. Korngiebel

    Paralegal

    Foti Law Firm, LLC

    112 W. 4th North Street, Suite A

    Summerville, SC  29483

    Telephone:  (843) 284-0888

    Fax:  (843) 284-0891

    amyk@fotilawfirm.com

     




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  • 15.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 09:51
    Amy,

    I just had a series of fraudulent cashier's checks about 1-1/2 years ago.  Scary stuff.

    ------------------------------
    Nancy L. Gusman, Esq., CLTP, NTP
    GusmanLegal, LLC
    Beltsville, MD
    (301)563-9669
    ------------------------------

    ALTA Marketplace


  • 16.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 10:00

     

    Same here in the Northeast.

     

     

     

    Logo  Description automatically generated

    Mary K. Eaton, Esquire
    Licensed in MA and CT

    mke@efclaw.com

     

    A picture containing logo  Description automatically generated

    67 Market Street | PO Box 9035

    Springfield, MA 01102-9035

    Phone: 413-737-0260

    Fax: 413-737-0121

    www.efclaw.com

     

     




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  • 17.  RE: How are you preventing wire fraud?

    Posted 06-24-2021 08:36

    Good Morning,

     

    Unfortunately, our bank has recently imposed a one day hold on all bank checks.  That creates logistic problems under the "good funds" statute.  This is a lose / lose situation. 

     

     

     

    Logo  Description automatically generated

    Mary K. Eaton, Esquire
    Licensed in MA and CT

    mke@efclaw.com

     

    A picture containing logo  Description automatically generated

    67 Market Street | PO Box 9035

    Springfield, MA 01102-9035

    Phone: 413-737-0260

    Fax: 413-737-0121

    www.efclaw.com

     

     




    ALTA Marketplace


  • 18.  RE: How are you preventing wire fraud?

    Posted 06-25-2021 09:03
    We have gone back to accepting certified checks and have them immediately scanned into our bank account.
    Wire instructions, if the client prefers a wire, are sent with encrypted email with instructions to call us to confirm the account information.
    We have found, educating our Realtor clients about the prevalence of wire fraud, how it happens and how often it is through their compromised/unsecured emails helps a lot. We encourage them to change their passwords on their emails every 30 days....90 max!​

    ------------------------------
    Lisa R
    Michigan
    ------------------------------

    ALTA Marketplace


  • 19.  RE: How are you preventing wire fraud?

    Posted 06-25-2021 09:29
    Simple solution 
    Fundingshield Wavs service
    Mismo certified 
    Market leader $1.4T processed already



    Ike Suri

    Chairman & CEO

    O: (949) 706-6500

    M: (949) 295-8200W: FundingShield.com

     

    Awards recipient of:

          



    Sent from my iPhone



    ALTA Marketplace


  • 20.  RE: How are you preventing wire fraud?

    Posted 06-28-2021 06:54
    We currently use CertiFID encryption service.

    Dee Harrison

    Sent from my iPhone


    ALTA Marketplace


  • 21.  RE: How are you preventing wire fraud?

    Posted 06-28-2021 08:39
    Encryption does not address the issue of authenticity. Anyone can send encrypted information. But is it accurate and authentic?

    Henry J Dane
    Reply to hdane@danelaw.com


    ALTA Marketplace


  • 22.  RE: How are you preventing wire fraud?

    Posted 06-28-2021 09:56
    getbankshot.com allows checks to be processed from mobile devices securely and quickly (and way less expensive than a wire).

    ------------------------------
    Emily Traxler
    CEO
    Bank Shot
    Atlanta GA
    +1 (770) 596-9636
    ------------------------------

    ALTA Marketplace


  • 23.  RE: How are you preventing wire fraud?

    Posted 06-28-2021 10:43
    Is anyone using nsKnox for their wire fraud prevention? Any information on nsKnox would be appreciated.

    Regards,

    John Hammond
    President
    Riverway Title
    jhammond@riverwaytitle.com 
    713-266-2595

    ------------------------------
    John Hammond
    President/CEO
    Riverway Title
    Houston TX
    +1 (713) 266-2595
    ------------------------------

    ALTA Marketplace


  • 24.  RE: How are you preventing wire fraud?

    Posted 06-29-2021 07:17
    A critical strategy, taught by Greg Litster, president of SAFEChecks and Editor of Frank Abagnale's Fraud Bulletin, is to get a new, simple computer that is dedicated SOLELY to release wire transfer requests - it links to the bank and nothing else - no searching, surfing, etc. It must be a new computer, and a simple one is fine, because you can assume that any computer that has been used for anything else is infected. Any number of computers could be used to initiate a request, but ALL requests must be released ONLY from that new, dedicated computer. Also, having dual controls - dual authorization for making the releases would also be a good strategy.

    From an organizational "culture" standpoint, there needs to be a culture or a sense of "psychological safety" where it's ok for an "underling" to push back on an executive - or someone purporting to be an executive - who is asking for a wire transfer that is urgent, secret, or a bit out of the ordinary, without that "underling" getting in trouble, reprimanded, etc. I've seen email transcripts where the secretary expressed discomfort with the request but ultimately "caved" to the executive demanding that the wire transfer be sent, only to find out later that it was a very well-orchestrated BEC scam, and the wire was released to fraudsters impersonating the executive. There needs to be an avenue when someone feels uncomfortable that they can push back and ask for assistance in pushing back, without getting in trouble. Ultimately, almost all fraud comes down to human error on some level.

    ------------------------------
    Robin Johnson
    Robin Learning Systems
    La Crescenta CA
    +1 (818) 458-9525
    ------------------------------

    ALTA Marketplace


  • 25.  RE: How are you preventing wire fraud?

    Posted 06-29-2021 11:36
    While  the  suggestion  that  a new, dedicated  computer  be  used  to  initiate  wire  transfers seems  attractive,   since  it must  be  connected  to the internet  to  communicate  with the bank  (and also  to  download  anti-virus  and firewall updates), even  if  less vulnerable,  it still is not bullet  proof.   It  is safer  not  to use  the internet  at all  in order  to  communicate  about  or to give  instructions  for wire  transfer  of  funds.  We observe  an absolute  policy  of  never  giving  nor  honoring  wire  instructions  give  via  email or over the internet.    Even  though  faxes  can be forged,  they are still safer  than  email,  especially  if  your bank  will telephone  on receipt  to  verify  the faxed information,

    ------------------------------
    Henry Dane
    Dane, Brady & Haydon, LLP
    Concord MA
    +1 (978) 369-8333
    ------------------------------

    ALTA Marketplace


  • 26.  RE: How are you preventing wire fraud?

    Posted 06-29-2021 12:33
    Fundingshield has powered over $1.4 T safeguarding clients when wiring money, MISMO certified and used by most banks. 

    Ike Suri

    Chairman & CEO

    O: (949) 706-6500

    M: (949) 295-8200W: FundingShield.com

     

    Awards recipient of:

          



    Sent from my iPhone



    ALTA Marketplace


  • 27.  RE: How are you preventing wire fraud?

    Posted 06-30-2021 08:37
    Stewart strongly endorses CertifID.  So much so that Stewart has a partnership that ensures that Stewart agents received preferred pricing from CertifID because we believe it is one of the biggest threats all title agents and their customers face and we want to do our part to make sure Stewart's agents have access to the tools to protect themselves and their customers.

    ------------------------------
    Scott Gillen
    SVP
    Stewart Title Guaranty Company
    Houston TX
    +1 (800) 729-1900
    ------------------------------

    ALTA Marketplace


  • 28.  RE: How are you preventing wire fraud?

    Posted 06-30-2021 14:53
    Wire fraud prevention is a multi-textural approach that includes:

    - Internal and external education about the risk of wire fraud to heighten awareness.
    - Policies and procedures that empower employees to raise their hand if something is suspicious before funds are transferred
    - Proactively place your wiring instructions in the hands of the buyer EARLY in the transaction - fraudsters are convincing them that a wire must be sent in lieu of a check. If you don't get to them first, assume the fraudster will.
    - Securely send your wiring instructions to buyers with ID confirmation, acknowledgement and agreement to follow - this goes well beyond just sending it via secure email
    - Continually engage buyers and remind them about the risk of wiring funds up to the point of transfer. Don't just "send and forget" your wiring instructions.  
    - Verify the ID and bank credentials before sending funds out of your escrow account. ID validation is key as fraudsters are impersonating owners and mortgage lenders.
    - Have a plan to rapidly respond to a wire fraud incident.  If funds land in a fraudulent account, the chance of recovery after 48 hours is low.
    - Own your role in the need to protect all transactions from this risk.  Be the leader in your market and draw distinctions on what you are doing versus your competitors that are not proactively addressing the issue.

    Attached is a funds recovery roadmap and guide to protect buyers.  
    Happy to dive deeper in what is a great discussion here.  Thanks!

    ------------------------------
    Thomas Cronkright Esq.
    CEO
    Sun Title Agency of Michigan, LLC
    Grand Rapids MI
    +1 (616) 260-4533
    ------------------------------

    Attachment(s)

    ALTA Marketplace


  • 29.  RE: How are you preventing wire fraud?

    Posted 07-01-2021 07:55
    We just signed up for a service called "Safe Escrow." It almost looks too good to be true. We can't figure out how they offer what they offer and still make money. We will have it rolled out by the middle of this month. It is subsidiary of First American, so that gives us a lot of reassurance.

    James Cameron
    Jones & Cameron LLC
    P. O. Box 940
    2305 Worth Street
    Guntersville, AL 35976
    256-582-0588
    256-582-4300 (facsimile)

    ------------------------------
    James Cameron
    Attorney
    Jones & Cameron, LLC
    Guntersville AL
    +1 (256) 582-0588
    ------------------------------

    ALTA Marketplace


  • 30.  RE: How are you preventing wire fraud?

    Posted 07-02-2021 07:19
    I was just as excited until our disbursements were delayed by days 

    great idea the company needs to staff up to get funds out in a timely basis 

    we were told our volume was too high for them and they needed to ramp up 

    I would try them again if they can get funds out

    ------------------------------
    Sharon Shkrelja
    Speedy Title & Escrow Services, LLC.
    Clinton Township MI
    +1 (586) 739-2233
    ------------------------------

    ALTA Marketplace


  • 31.  RE: How are you preventing wire fraud?

    Posted 07-02-2021 08:52
    Look up Fundingshield 
    Plug n play
    Malleable
    No commitments
    No delays
    No software to download
    Scaleanle
    $1.4 T powered 
    Mismo certified
    B2B
    B2b2C



    Ike Suri

    Chairman & CEO

    O: (949) 706-6500

    M: (949) 295-8200W: FundingShield.com

     

    Awards recipient of:

          



    Sent from my iPhone



    ALTA Marketplace


  • 32.  RE: How are you preventing wire fraud?

    Posted 07-05-2021 11:17
    Edited by Andy White 07-05-2021 11:22

    Unfortunately, there is not a silver bullet solution. Wire fraud prevention requires a layered approach. We talk with title people every day about what they are doing to reduce wire fraud. Since this is a message board, I'll try to keep it brief what we've learned over the years:

    1. Stop using email for wire instructions (sending and receiving)
    2. Verify payoff accounts
    3. Keep it simple

    For #1, the best advice I can give is to stop emailing wire instructions. Spoofed emails account for the vast majority of wire fraud losses in the industry, and the best way to avoid spoofed emails is to stop using email for sharing wire instructions. Encrypted email is great, but it does little to prevent the fraudsters from sending spoofed emails - fraudsters send encrypted emails too (or emails that look encrypted). There are several services specifically in our industry for helping with this - here are a few: ClosingLock, CertifID, SafeWire

    For #2, there are several services out there (our included) that can help you verify valid payoff accounts before sending out wires. You can also maintain a "safe list" of your own for valid payoff accounts (make sure to keep it secure). A good old-fashioned phone call to a legitimate phone number can also minimize this threat vector.

    For #3, whatever procedures you use, keep them simple. There are plenty of complicated solutions out there, but complication does not mean better security. The more complicated it is for you and your clients, the less likely everybody is to use it. I have heard countless times about companies implementing procedures only to be thwarted by pressure from the client of "this is too complicated, can't you just email it to me."

    Here is a great resource from ALTA on wire fraud: https://stopwirefraud.org/
    And, here is an ALTA webinar we did a few months ago explicitly addressing cybersecurity and wire fraud: How to Get Your Cyber House in Order

    Hope this helps, and please stop emailing wire instructions!

     

    Regards,

    Andy

     


    Andy White, PhD
    CEO
    p: (512) 434-0075 
    e: andy@closinglock.com 

    IMPORTANT: The contents of this email and any attachments are confidential. It is strictly forbidden to share any part of this message with any third party without the written consent of the sender. If you received this message by mistake, please reply to this message to let us know and then delete this message.

     

     




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  • 33.  RE: How are you preventing wire fraud?

    Posted 07-14-2021 13:58
    Edited by Jason Jones 07-14-2021 13:58

    Wire Fraud is an ever-growing threat for title agents. Safeguarding those funds are critical. Safe Escrow is one of the solutions that can help protect agents. Through the Safe Validation process, all outgoing wires are verified to ensure disbursements are done securely. There are other ancillary services that can help with many back office functions a title agent does today.    




    ALTA Marketplace


  • 34.  RE: How are you preventing wire fraud?

    Posted 07-23-2021 15:32
    Great discussion everyone. As you all know, ALTA continues to provide education and raise awareness about wire fraud. We are working with NBC for a potential spot on The Today Show and/or NBC Nightly News on the threat of wire transfer fraud. The reporter is looking for examples of fake emails sent by criminals. Any emails you can share that highlights why people are fooled by this? We would redact any personal information that could identify anyone or any companies.

    ------------------------------
    Jeremy Yohe
    Vice President
    American Land Title Association
    Washington DC
    +1 (202) 296-3671
    ------------------------------

    ALTA Marketplace


  • 35.  RE: How are you preventing wire fraud?

    Posted 08-06-2021 13:16
    Thank you all for contributing to this discussion! I am always interested in learning how people are protecting themselves and their customers from wire fraud. Has anyone looked or is using any of the electronic payment platforms?

    ------------------------------
    Perla Aparicio
    Charlotte NC
    ------------------------------

    ALTA Marketplace


  • 36.  RE: How are you preventing wire fraud?

    Posted 08-06-2021 13:21
    We are



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