A recipe for increasing the opportunities for fraud
With record refinancing volumes, continued purchasing activity, and millions of people now working remotely due to the COVID-19 pandemic, lenders face increased risk of fraud.
Over a two-week period in April, at the start of the recent home-based work environment in the United States, FundingShield saw a 62% increase in transfer instruction errors, documentation errors, attempted perpetuated fraud, phishing attempts and funding requests from unauthorized / unrelated third parties. part accounts or accounts unrelated to wiring instructions.
The potential for digital mortgage and securities fraud increases every time there is an exchange of data and every time funds are transferred.
The move to working from home has required adjustments, and an employee’s remote working environment may not have the same level of cybersecurity measures in place as the traditional office. For example, the potential use of insecure networks and Wi-Fi routers with weak encryption creates a higher risk of data breaches.
Additionally, the FBI recently reported a 50% increase in mobile banking services since early 2020 following stay-at-home orders, issuing a Message of public interest regarding the potential for increased risk of cyber fraud. Bogus banking apps and app-based banking Trojans are two techniques cyberactors often use to defraud, according to the FBI.
In this age of remote working and record lending volumes, lenders need to take the right steps to protect themselves and their borrowers.
FundingShield offers industry-leading B2B and B2B2C fintech fraud prevention solutions that provide transaction-level coverage against lead and title fraud, settlement risk, closing agent compliance and cyber threats. For more information visit https://fundingshield.com/ or send an email to [email protected]