To encourage cooperation between federal and law enforcement agencies and private sector partners in monitoring and reporting for cyber-based crime events, language regarding Business Email Compromise (BEC) has been incorporated into two House Appropriations bills recently advanced by House negotiators.
This action signifies more explicit rules for banks, lending institutions, and other entities with access to private borrower information and recordable instruments as agencies look for best practices. These institutions are urged to implement tools, technology, controls, or procedures to safeguard against these internet hazards to prepare for increased scrutiny.
Data showing a persistently high risk of wire and title fraud during Q2 2022 supports these worries regarding business email compromise and other cyber-crimes. According to a Q2 review by MISMO-certified wire and preventative fintech Funding Shield, there was a 107% increase in closing agent insurance policy coverage gaps, a roughly 10% increase in CPL difficulties, and a 40.69% increase in wire-related issues compared to Q1 2022.
According to Funding Shield CEO Ike Suri, wire and title fraud remained at all-time high levels in the second quarter of 2022 despite market contraction, rising rates, and an increase in fraud risk.
With today’s lower volumes, there has never been a more pressing need to manage risks while keeping costs down. Suri claims that Funding Shield has seen a 15% increase in clients in the past month due to businesses downsizing and looking for variable cost solutions in a competitive market where fraud is anticipated to rise. The offering becomes valuable and significant to lenders and their businesses with a transaction level coverage of about $5 Million per transaction. To read more on fraud risks in the industry, click here.
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