Fraud Advisory

According to Global Investigative Operations Center (GIOC), The U.S. Secret Service has seen a sharp increase in fraud targeting transfers related to real estate sales and mortgages.

More often than not, mortgage payoff statements are sent by mortgage lenders to title companies, who are then responsible for administering payment. This fraud strategy involves the impersonation of mortgage lenders with the intent to obtain payment. The cybercriminals send fictitious or altered mortgage payoff statements to title companies. Should the title company believe the payoff statements are legitimate, they’ll follow the instructions included and wire funds to accounts controlled by the cybercriminals.

Prevention:

✔️ Update policies and procedures to ensure proper verification of information before releasing funds.

✔️ Independently obtain mortgage payoff statements and confirm with verified and trusted sources.

✔️ Independently verify the authenticity of information included in correspondence and statements.

✔️ Do not rely on third parties, such as mortgagors or other transaction participants, for information.

✔️ Restrict wire transfers to known and previously verified accounts.

✔️ Pay using checks when the information cannot be independently verified.

✔️ Have a clear and detailed Incident Response Plan. For more information visit the Secret Service Preparing for a Cyber Incident page.