Cybersecurity and wire fraud prevention have consistently topped the list of priorities for mortgage and title leaders over the past several years. Despite the industry’s commitment to fortifying against cyber attacks and wire fraud, these incidents continue to rise. Rynoh’s extensive experience in the financial industry aligns with these trends, reflecting the FBI’s latest Internet Crime Report, which shows a record number of reported complaints and a 22% increase in overall losses between 2022 and 2023.
The Cybercrime Landscape in 2024
Cyber attacks impacting high-profile title and mortgage firms have been making headlines. However, small businesses are equally at risk. The current influx of cyber attacks can be attributed to three emerging threats:
Artificial Intelligence (AI)
AI technology’s increasing accessibility and sophistication enable criminals to conduct attacks at scale. Criminals can use AI tools to scrape the internet in seconds, uncover detailed information about individuals, and execute highly targeted phishing attacks. AI also facilitates “gray area” fraud, where individuals facing financial hardship use AI to alter documents during the mortgage underwriting and preapproval process, leading to significant financial implications for mortgage companies.
State-Sponsored Attacks
Real estate transactions have become appealing targets for bad actors who aim to disrupt local and global economies. These attacks often occur in waves every three to four months, influenced by geopolitical factors like elections, wars, and international conflicts.
Professional Cybercriminal Organizations
Underground organizations now offer “ransomware as a service,” enabling bad actors to conduct attacks with customer support and seamless payment infrastructures. AI advancements also allow professional criminals to perform sophisticated phishing attempts on C-level executives for larger payouts.
Strengthening Your Business Against Cyber Threats
Given the threat, businesses cannot rely on one-time technology investments or set-and-forget processes. Here are practical tips to stay ahead of cyber and fraud risks:
Expect and Plan for an Attack
Even with a proactive approach to cybersecurity, businesses must be prepared for attacks. Many companies are unsure what to do when an attack occurs, but quick action is critical to recovering funds. Ensure that your team knows who to call and what steps to take when and after a report is made.
Incremental Investments
Instead of making one-time, large investments in security, businesses should invest incrementally every quarter in initiatives, partners, and platforms that protect against growing cyber threats. Regular, smaller investments can be more effective than infrequent, large expenditures in response to attacks. Platforms like Rynoh are ideal for discovering security vendors tailored for real estate transactions.
Systematic Examination of Failures
Single incidents often indicate broader systematic flaws. When an attack occurs, use the incident as an opportunity to identify root causes and fix vulnerabilities in your system and processes. Educate your staff about what fraud might look like and encourage them to ask questions.
Continuous Process Reassessment
Leaders must continually reassess their processes to maintain a state of heightened awareness. For example, with the rise of deepfake technology, title professionals can stay alert by verifying suspicious activities during high-risk moments, such as wire instructions. Asking someone on a video chat to unblur their background or call you on your cell phone to verify their identity can help detect deepfake impersonations.
Leveraging Rynoh’s Comprehensive Solutions
Rynoh offers a suite of solutions to strengthen your defenses against cyber threats:
- RynohLive: Provides real-time transaction monitoring, ensuring the integrity of financial transactions.
- RynohOpX: Enhances operational excellence, automating processes to reduce human error and increase efficiency.
- RynohEscheat: Manages unclaimed property, ensuring compliance with state regulations.
- RynohVerifi: Ensures robust data verification, maintaining the accuracy and reliability of financial data.
You can safeguard sensitive information and maintain operational integrity by integrating Rynoh’s solutions into your cybersecurity strategy. For more information on how Rynoh can help your business combat cyber threats, visit Rynoh.