As reported by the FBI’s 2020 Internet Crime Report, the amount of money lost due to cybercrimes has increased in recent years, totaling $4.2 billion in 2020. Nearly 6,000 businesses are targeted every month by some sort of Business Email Compromise scam.
While cybercrimes related to the wiring of funds are nothing new, the chaos of the real estate market during the pandemic has led to more elaborate schemes being used against stressed homebuyers, real estate agents, title agents, and other real estate professionals specifically.
The American Land Title Association, ALTA, recently reported that roughly one-third of all real estate transactions in 2020 showed signs of attempted wire fraud.
During our recent interview with Tom Cronkright of Michigan’s Sun Title and CertifID, we gained some insight into how wire fraud begins, how it is prevented, and how a title company plays an essential role in protecting the real estate transaction.