Wire fraud is one of the fastest growing and most devastating crimes in the real estate industry. As this problem grows, all parties involved in the transaction seem to become more and more aware of the potential risk. However, the losses continue to grow. NBC has been reporting on the increase in real estate fraud and reached out to Qualia CEO Nate Baker for insight.
"The industry is under attack," Nate said to Chris Chmura of NBC. "There needs to be a lot more conversation about this. I think people have the view: 'this won't happen to me'."
But in 2017, $969 million was 'diverted or attempted to be diverted' from real estate purchase transactions and wired to 'criminally controlled' accounts. In fiscal year 2016, the FBI recorded $19 million in real estate transaction wire fraud.
Thomas W. Cronkright II also came to the conclusion that the industry needs help in his article in the National Mortgage News. "Whether we like it or not, wire fraud isn't going away," he said. "Now is the time for the entire industry — realtors, lenders, brokers, service providers — to work together to attack this menace."
To combat fraud and prevent any security issues, title companies and real estate professionals should be using the latest security features to keep their data safe and secure.
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