Wire Fraud

Wire fraud in real estate is no longer the work of opportunistic scammers. It has evolved into a sophisticated, global enterprise. One that is faster, smarter and often better organized than many in the industry understand. That was the stark message delivered to more than 400 attendees during the ALTA EDge session, “The Great Transaction Heist: Inside Modern Wire Fraud,” experts pulled back the curtain on how modern fraud operations really work.

Reported losses in the U.S. from real-estate and wire-transfer fraud soared to $12.5 billion in 2023, according to the Internet Crime Complaint Center (IC3) of the Federal Bureau of Investigation (FBI). Navigating the real estate world can feel like trying to identify weeds in a new garden patch; some are obvious, while others look deceptively like the real deal. We are here to help you spot the poison ivy before you get a rash.

In 2012, former FBI Director Robert Mueller opined, “There are only two types of companies: those that have been hacked and those that will be.” That statement rings true 13 years later. Today, wire fraud remains one of the most pressing threats facing title and escrow companies. Fraudsters are becoming increasingly sophisticated, leveraging business email compromise, seller impersonation and even deepfake technology to infiltrate transactions. As the threats have escalated, the types of strategies criminals use to steal funds continue to evolve. This highlights the importance of continuous training, robust verification processes and industry collaboration to protect businesses and consumers from financial loss.

After months of house-hunting, Raegan Bartlo and her husband finally found their dream home in a small West Virginia community just a few hours from Washington, D.C. But that dream became a nightmare as a few days before the closing, Bartlo received an email she thought was from her title company. The email provided instructions on how to wire the money for closing. She wired the $255,000 down payment as per the email’s directions.

Housing is a major driver of the U.S. economy. The industry sector contributes an estimated 18% of the national gross domestic product, or GDP, and the value of U.S. homes represents more than $50 trillion in household wealth in the form of home equity. Unfortunately, criminals have become adept at using technology to take advantage of unsuspecting consumers, writes ALTA CEO Diane Tomb and CertifID Executive Chairman Thomas Cronkright II.

Listen to this webinar recording as experts examine emerging fraudulent schemes, including the use of AI deepfake technology and seller impersonation, and provide essential strategies for companies to protect themselves and their clients.

After months of house-hunting, Raegan Bartlo and her husband finally found their dream home in a small West Virginia community just a few hours from Washington, D.C. But that dream became a nightmare as a few days before the closing, Bartlo received an email she thought was from her title company. The email provided instructions on how to wire the money for closing. She wired the $255,000 down payment as per the email’s directions.

Available to all First American policy-issuing title agents, Order Insights is now included with AgentNet Services, the digital storefront for First American Title’s products and services that launched earlier this year.