A string of attacks that
There is usually an uptick in fraud at the end of the year and 2023 was no different, a report by FundingShield published Tuesday said.
More than half of the loans in a $61 billion portfolio had at least one risk issue that could lead to wire or title fraud, marking a 5% increase
The incidents in recent months and the report's findings highlighted the "industry's lack of readiness," FundingShield's CEO Ike Suri said.
"We saw the challenges created by the
Loans showing signs of fraud risk had 2.2 issues on average in the fourth quarter, up from two the prior quarter. At the same time, wire-related issues and license related issues spiked by 33.67% and 79.48% from the third quarter, respectively. Flaws found in closing-protection letters rose by 22.28%.
The risk of fraud-related events is likely to amplify as the tools available for cyber criminals to attack the mortgage and title space grows.
Aging technology applications with gaps in security updates and an availability of artificial intelligence-driven tools to deploy attacks can be potential avenues for nefarious players to attack the financial services sector, Suri said.
"We are in the trenches, holding hands with our client's loan by loan," FundingShield's CEO added. "We have been speaking to COOs, CISOs, CFOs, heads of Capital Markets, and treasury on the need for funding controls as part of their cybersecurity defense and readiness as auditors or investors ask for evidence of a plan."
Since November, at least four players in the housing space have been hit by cyber attacks,
Of the four companies, three have thus far reported that