Report: $1.4B in Suspected Wire Fraud Identified by CertifID in 2022

CertifID identified $1.4 billion in suspected wire fraud attempts during 2022, according to a report released by the wire fraud protection firm.

The report shows an 145% year-over-year increase in instances of reported wire fraud. The report, which is based on proprietary data from CertifID’s wire fraud protection and recovery tools and services engagements, examines over $100 billion in wire transactions.

According to the report, wire transactions are increasingly at risk with suspected fraud targeting 83% of CertifID’s customers at least once in 2022. The heightened risk corresponds with an overall shift toward digital payments, accelerated by the COVID-19 pandemic.

CertifID, which safeguards wire transactions by verifying identity, bank account and biometric information alongside 150 different markers of fraud, developed the State of Wire Fraud to report on the trends and trajectory of wire fraud.

Additionally, the report showed that CertifID’s recovery cases average $165,000 per instance of reported wire fraud in 2022

“Given their instantaneous speed, high dollar value and recovery challenges, wire transactions are extremely attractive targets for fraud operators. In our experience with the real estate industry, protections against wire fraud have had to evolve,” said Tyler Adams, co-founder and CEO of CertifID. “To combat wire fraud, businesses and consumers that rely on wire for sending and receiving payments need to employ a multi-layered protection and response plan to minimize their risk.”

Revisions to ALTA’s Title and Settlement Company Best Practices attempts to improve security sending wire transfers. Pillar 2, which addresses escrow accounts, was updated to specify that wire transfer procedures should include multi-factor authentication and follow ALTA’s published guidance. The procedures also were updated to recommend the use of wire verification services:

If available, efficient, and economical, make use of wire transfer verification service providers. Such service providers should be vetted to understand any risk of use, security protocols, and the providers’ protection of Consumer data.
“We’ve made huge strides in awareness on wire fraud,” said ALTA CEO Diane Tomb. “Now, in addition to providing resources and education, we’ve codified the use of wire verification services as an industry best practice.”

ALTA Wire Fraud Resources

ALTA Outgoing Wire Preparation Checklist: Use this checklist as a best practice for verifying outgoing wire information.
ALTA Rapid Response Plan for Wire Fraud Incidents: Use this tool to customize your action plan when a wire fraud attempt occurs.
Video: How To Complete an IC3 Report. Watch the video to see how easy it is to help law enforcement gather information.
ALTA Cybersecurity Incident Response Plan: Use this tool to help your team to establish and maintain secure systems and be prepared to act quickly if an incident occurs. Leverage these resources to implement Step 1: Preparation:
*NEW for 2023* ALTA Cyber System Overview: Use this narrative to improve your understanding of a Cyber System Inventory, why it is important to Cybersecurity efforts, and how to create and maintain your company’s inventory.
*NEW for 2023* ALTA Cyber System Inventory Workbook: Use this model workbook to create and customize your company’s inventory.
*NEW for 2023* ALTA Business Impact Analysis: Use this guide to examine your software applications, determine which resources are critical to your operation, and discover when to add resources to minimize the business impact of downtime.
Wire Fraud Tips Video: Share this 1-minute video with homebuyers so they know how to protect their money.
ALTA Wire Fraud Video: This 2-minute video provides four tips on how consumers can protect their money and offers advice on what to do if they have been targeted by a scam. Link to this video from your website, include in your email or share on social media.
ALTA Wire Fraud Infographic: ALTA has produced this Rack Card explaining Wire Fraud. ALTA Members can brand the infographic with their own information at the ALTAprints website.