Mortgage payoffs are increasingly becoming a target of criminal activity, as new schemes are being developed to commit large-scale frauds on unsuspecting buyers and lenders. A prominent example is SIM swap fraud, where criminals exploit loopholes in the authentication system allowing them to steal the identities of buyers or lenders in order to access and manipulate their accounts. Fraudsters might access loan portfolios of lenders and alter wire instructions, change the loan payee, and redirect loan proceeds.
The title industry is responding to this threat by developing new security protocols and discouraging its customers from using insufficiently secure methods of transferring funds. Additionally, the use of fraud prevention technology throughout the title, mortgage, and settlement industry has accelerated in response to the emergence of this new threat.
– New security protocols developed by title industry to combat mortgage payoff fraud
– Criminals use SIM swap fraud to steal identities and manipulate accounts
– Fraud prevention technology adopted throughout title, mortgage, and settlement industry
– Existing security measures, such as using secure means of transferring funds, discouraged
You can read this full article at: https://www.housingwire.com/articles/for-the-title-industry-new-tech-means-new-opportunities-for-fraudsters/(subscription required)
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