We’ve all heard the age-old idiom, “Prevention is better than cure.” This is especially true when it comes to recovering funds from a fraudulent wire transfer. While it’s not impossible, only 29 percent of stolen funds were fully recovered from wire transactions in 2020, as reported in the 2021 ALTA Wire Fraud Survey.
Wire transfers in the real estate industry typically involve very large sums of money alongside important elements of communications. As a result, it attracts criminals and fraudsters eager to exploit the transaction process. Unfortunately, their ability to intercept and redirect funds is becoming more and more savvy.
What can I do if I suspect a compromised wire transfer?
Here’s the lowdown on what you need to know about reversing a wire transfer. First off, it’s all case-by-case dependent. Normally speaking, the more time that has passed since the official initiation of the transfer via the SWIFT network, the lower the chances of recovery.
If you suspect that your wire transfer has been compromised, the first thing to do is communicate with the bank. Then, report the incident to the Federal Trade Commission (FTC), the FBI’s Internet Crime Complaint Center (IC3) and finally, local law enforcement.
After establishing contact with all the financial institutions involved, one of the banks may be able to freeze or recall the funds. This is commonly known as a SWIFT recall. The likelihood of securing the funds again comes down to the bank’s policies, the type of fraud, the payment method used and, again, how fast the suspected fraud was reported.
The FBI may be able to collect details of the matter and cross-check with other investigations to recover the funds and/or hold these criminals accountable. There’s often a pattern with these cases but phishing has become extremely sophisticated. Some of the most popular impersonators for repeat offenders include DocuSign, the U.S. Department of Treasury, accounting firms, and of course, title assurance companies, which is why we must all be vigilant in prevention. In 2023, $1.1 billion in total losses was reported due to impersonation scams. Cybercrime can happen to anyone but having the right tools and resources in place is paramount.
A partnership for protection
At Landmark Title, we pride ourselves on staying on top of the latest real estate fraud prevention solutions to keep our business and customers safe. Learn more here about how our investment in CertifID is helping deliver safe and secure transactions. Through this bank account certification and identity verification software, Landmark Title’s escrow officers can send secure and safe wiring instructions and can collect and confirm banking details quickly and accurately for residential transactions.
CertifID’s wire fraud recovery team has seen the return of almost $69 million to title companies and customers. This unique platform provides safeguards from phishing fraudsters. CertifID’s recovery services also provide access to its team of fraud recovery experts, as well as a 24/7 communication hotline, supplementary law enforcement support and expedited bank account freezing.
If you would like to learn more about Landmark Title and the steps you can take to protect your real estate transactions, get in contact here.