Fraud Watch: Title Edition

Business Email Compromise

Cyber fraud continues to escalate — and the title industry remains a prime target.

According to the FBI’s Internet Crime Complaint Center (IC3), cyber-enabled crime losses totaled $50.5 billion between 2020 and 2024. Americans lost $20.9 billion to cyber-enabled crime in 2025, a 26% increase from 2024. Business Email Compromise (BEC) accounted for approximately $3 billion in losses, remaining one of the most financially damaging fraud schemes. In addition, cyber criminals are increasingly turning to AI tools to carry out more sophisticated phishing, social engineering, and voice or video impersonation scams. For a deeper look at the data and emerging fraud trends, we encourage you to review IC3’s 2025 Annual Report.

For title professionals, these numbers are more than headlines. They’re a reminder that speed must always be paired with vigilance.

Practical Steps to Strengthen Your Defenses

1. Embed multi-factor authentication (MFA) into operational workflow
   Wire instructions — and even the method used to send them — can be spoofed to appear legitimate. Always confirm payment requests through established, multi-step verification procedures.
2. Pause and confirm
   If you receive updated wiring instructions, verify them through a known, trusted phone number that is independent of the original source. Fraudsters rely on urgency and impersonation.
3. Continuously evaluate email security controls
   Assess filtering tools, domain monitoring, spoof protection, and employee training. Enhance where gaps exist.
4. Conduct a formal risk assessment
   Review: wire and identity verification procedures, dual-control protocols, third-party platform oversight, cybersecurity strength, insurance coverage, employee training and fraud awareness culture
5. Maintain a documented Incident Response Plan
   If fraud occurs, response time matters. A clear escalation and recovery plan reduces loss exposure and operational disruption.
6. Understand the risks
   Wire transfers are typically irreversible once sent. While we make every effort to assist with recovery in the event of fraud, recovery is not guaranteed. Before releasing funds, be confident that the beneficiary is the intended and verified destination.

Fraud prevention is not just about technology — it’s about disciplined processes, informed teams and trusted partners.

At Customers, we help our title clients move quickly, confidently and securely — with the controls and expertise required in today’s threat environment. As an ALTA Elite Provider, we support industry best practices established by ALTA to help strengthen information security, reduce fraud risk and support sound operational processes. A comprehensive list of resources provided by ALTA can be found here.

*Your company and team are solely responsible for establishing, maintaining and evaluating its own internal controls and fraud prevention procedures. While Customers Bank may share insights and best practices, we do not assume responsibility for a company’s fraud prevention program or the outcome of any specific transaction.