Bulletin: SLS2019003

Dear Associates:

According to the Federal Trade Commission, consumers lost over a billion dollars last year to fraud, including wire fraud, an ever-increasing cybercrime. Real estate and title insurance transactions can be targets for wire transfer fraud. These transactions include multiple parties and the use of online tools and resources. Fraudsters can use online real estate shopping tools to seek out transactions getting ready to close, hack into an unsecure email account and use that information to send fraudulent wire transfer details. It is important to be aware of your transaction, and knowledgeable about these types of schemes in order to prevent fraud. 

The National Association of Insurance Commissioners offers these tips to help keep consumers protected.

• At the beginning of your transaction, make sure to obtain a contact name, email and phone numbers for your real estate agent, lender, seller/borrower, buyer, title insurer and closing and settlement agent, if separate. Only use these numbers and email addresses when communicating with the individuals during the transaction.
• Make sure you use two-factor authentication on your own email account and encourage other individuals included in the transaction to do so as well.
• Wire instructions will typically come from your title/closing agent before your transaction is set to close. Verify the wire instructions by calling recipients directly or discussing it in person. Email accounts can be compromised, so be sure to verify the information you receive through direct communication. Also, "hover" the cursor over the sender's email address to verify that the actual sender's address is an address used throughout the transaction.
• Be aware of any email or correspondence that asks you to respond immediately or to rush. Title companies will not ask for a wire transfer in that way. Be suspicious of any communication saying that wire transfer details have been updated.
• Always confirm receipt of the wire transfer a few hours after the wire was transmitted to ensure it successfully went through to the right parties. If the wire transfer is not confirmed, be sure to verify the bank and account information. This verification should only be completed through the original telephone numbers you obtained early in the transaction.
• Be especially diligent when conducting closings before a three-day weekend and when wires are going to a foreign county.
• Be especially diligent when conducting closings on transactions worth ten million dollars or more.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For online viewing of this and other bulletins, please log onto www.vuwriter.com.