Consumers are demanding a more seamless and digital home-buying process and the industry is ripe for cybersecurity-related losses. Due to large sums of money being transferred electronically in our industry, wire fraud is an ongoing issue. According to a 2022 ALTA (American Land Title Association) survey, only 17% of wire fraud victims recovered all their funds.
Real estate transactions frequently involve multiple parties, including buyers, sellers, agents, title companies, law firms, and mortgage lenders, which creates more opportunities for wire fraud to occur.
STEPS YOU CAN TAKE TO HELP REDUCE WIRE FRAUD:
- Education is your first line of defense! Advise your clients about wire fraud risks including unexpected requests for funds or changes to wire instructions.
- Work with reputable partners, like TrustFunds, who also take measures to prevent wire fraud.
- Verify wire instructions and only use secure communication channels with encrypted technologies.
- Remain vigilant for signs of wire fraud. Scammers use various tactics to trick homebuyers, sellers, and agents into sending money to fraudulent accounts.
While wire fraud and check fraud incidents continue to evolve rapidly in sophistication and number, TrustFunds is the first (and only) fully integrated MLS earnest money payment platform with built-in fraud protection features. We’re your “trusted” industry partner to Reduce Wire & Check Fraud!
Let’s protect the industry together; start using TrustFunds today!
Companies interested in registering to hold earnest money funds can Get Started Here or Contact Us.
ABOUT TRUSTFUNDS
TrustFunds provides comprehensive electronic earnest money solutions directly integrated with the MLS platform. The solution enables buyers, agents, brokers, and designated trust account holders to easily process, manage, track, and reconcile earnest money transactions in one convenient web-based tool. TrustFunds mission is to provide more time for more life by simplifying and securing the earnest money process. For more information, visit www.trustfunds.us.com.