Bank (Financial Institution) Wire Fraud!!!
Bank wire fraud has become a huge problem, has resulted in significant losses, and preventing it from occurring requires strict due diligence by all involved in a transaction.
Fraudsters and thieves have become increasingly adept at recreating almost perfect copies of payoff letters, and obtaining the contact information of the attorneys, lenders, buyers and sellers.
And, when parties to the transaction receive the ’new’ information, the account numbers provided will send the money to wire la la land, never to be seen again.
The much preferred way to exchange money, such as the sellers mortgage payoff, is through a bank check that will then get overnighted to the servicing institution.
If a wire must be used to payoff the sellers mortgage or any other purpose, the information on any payoff letter MUST be confirmed through independent checking that will require authorization from the party to the wire in order to check the wire information with their financial institution.
The banks payoff department contact information needs to be obtained by a master list that has confirmed contact information from the past, or by something as simple as Googling and getting a phone number.
And for those with Cyber insurance polices it is most likely that wire fraud is not a covered event. Check with your carrier.
To obtain wire fraud insurance, the premium will likely be prohibitive, but once again, check with your insurance carrier.
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If you want to understand more about New York title insurance and title insurance providers, please read the article…
‘Are New York Title Insurance Providers All The Same?’ here, https://www.hallmarkabstractllc.com/new-york-title-insurance/.
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