Fundingshield reports ~$75 million per day in wire and closing fraud exposure

Fundingshield reports an estimated $75 million per day in wire and closing fraud exposure. This would equate to exposure of ~$20 Billion in 2018.


This report leverages Fundingshield’s industry-leading proprietary software, analytics and transaction database of wire account information and transaction closing history. Furthermore, this projection is specific to lender wire and closing fraud attempts, and does not capture the much higher volume of wire fraud attempts against consumers in housing transactions.  Wire and closing fraud victims overwhelmingly underreport losses because of reputational risk concerns.


As Fundingshield has shared previously, Cyber criminals use crawlers, also known as software bots, with redundant schemes and hacks, to leverage phishing attacks, system invasions, and email compromises, all with a view to move funds to unauthorized parties especially with “trusted vendors”. The Financial services experienced 27 percent of all security incidents and 17 percent of attacks in 2017.

“The proliferation and ability for cyber criminals to penetrate the mortgage market has less to do with manual vendor risk controls or processes around known business parties and more to do with the expansion of digital lending processes, widespread use of wireless networks that may not be encrypted and properly secured, email server threats to known parties of lenders, closing and settlement companies and law firms.  Third Party Originated loans have enhanced risk as the Lender often does not have a trusted relationship with the closing and settlement agent.  Unknown parties to the transaction as well as known parties and trusted vendors are being exposed to these risks hence a proactive transaction level monitoring system is needed.”

shared Jerry Halbrook, Senior Advisory Board member of FundingShield.

Wire fraud continues to be a key risk driver in focus for the mortgage market including at the MBA Risk Management, QA & Fraud Prevention Forum in Los Angeles last month where the subject and solutions such as Fundingshield’s came up in the Fannie Mae panel. Lenders need to take a proactive approach to wire fraud risks as the impact can be substantial and recovery cost and timelines are highly varied.


Lenders are facing a tougher market forcing them to be extremely cost conscious and this creates gaps in controls and procedures if risk is not managed leveraging cost-efficient tools. Our clients experience 100% plus return on dollar spend with our user centric delivery while improving risk management around closing, settlements, wire and fund controls,

shared Ike Suri, CEO of FundingShield.


FundingShield is the market leader in wire fraud prevention, closing agent risk / compliance and vendor risk management automation. Fundingshield validates parties, documents and bank accounts at the loan level alerting those involved of possible fraudulent activity to avoid theft.  Are you tracking the Return on Investment of your risk management tools that protect your funds, brand and reputation in the market?  Our plug and play APIs and integrations make deploying a customized user centric solution delivery seamless.

Contact +1 800 295 0135 x2 or to learn more about their services.