Title News, the official title industry magazine of the ALTA (American Land Title Association), has published an article by Jeremy Yohe, concerning the association’s recent efforts to urge the CFPB (Consumer Financial Protection Bureau) to issue consumer alerts as money wiring and fraudulent email scams intensify. Clear Title takes these threats seriously, and continues its efforts to increase customer awareness. Please take a moment to read this important article.
Phishing for Wire Transfers
Constant Education Needed, ALTA Urges CFPB to Issue Consumer Alert as Fraudulent Email and Money Wiring Scams Intensify
As president and chief executive officer of Texas-based Rattikin Title Company, Jack Rattikin III has plenty of things that occupy his attention. Third-party vendor oversight and threats to the rating structure in Texas are two top-of-mind issues, but they’re not what keeps Rattikin up at night. Over the past year, a new threat has emerged to become the main reason for late-night tossing and turning for title and settlement professionals: phishing and wire fraud. “I make it clear in every staff meeting and with our closing teams that wire fraud is our number one concern,” Rattikin said. “It’s not just closing deals and searching titles anymore. There’s a lot of risk that we have to think about every day. This is what keeps me up at night. A large wire that ends up in Russia or China could put us out of business.”
By Jeremy Yohe
How It Starts
Criminals begin the wire fraud process way before the attempted theft occurs. Most often, they begin with a common social engineering technique called phishing. This can take the form of email messages, website forms or phone calls to fraudulently obtain private information. Through seemingly innocuous communication, criminals trick users into inputting their information or clicking a link that allows hackers to steal login and password information.
Phishing emails might appear to come from a legitimate business or recognized user. Spear phishing is a more targeted email attack sent to a select number of users, while a whaling attack, also known as Business Email Compromise (BEC), is a more targeted variation of spear phishing aimed at high-profile executives or personnel who manage wire transfers. According to the latest Association for Financial Professionals’ Payments Fraud and Control Survey, a majority of finance professionals (64 percent) reports that their organizations were exposed to BEC in 2015. The FBI’s Internet Crime Complaint Center reports that “the BEC scam continues to grow, evolve and target businesses of all sizes.” Since January 2015, there has been a 1,300 percent increase in identified losses, now totaling over $3 billion…
