Category: Compliance


Who’s responsible for wire fraud?

We hear about it all the time, wire fraud, cyber security, secure networks and portals. We don’t think it can happen to us, until it does.

The way wire fraud cases are handled is changing. No one is exempt from wire fraud, and going forward, everyone in a transaction could be held responsible for the wire fraud.

As Thomas W. Cronkright II, Esq. and Lawrence Duthler, Esq. of CertifID LLC show in their recent report, all participants in a transaction are responsible for wire fraud loss. A recent Kansas Federal District Court decision ruling found a bank, title company, real estate agent, and real estate broker liable in a transaction hit with wire fraud. The cybercriminal hacked into the seller’s agent’s email and was able to reroute the buyer’s wire to a fraudulent bank account. The buyer lost $196,622.76 that day, none of which was recovered.

According to the report:

“The buyer argued that all defendants had a duty to protect them from the losses they incurred and that the failure of these defendants to live up to that duty led to the fraudulent loss of their funds. In response, the defendants responded by arguing that they owed no duty to the buyer because they did not serve in a formal representative or fiduciary capacity.”

While the bank and title company settled in mediation, it was the seller’s real estate agent and broker who were found liable for 85% of the losses during the transaction, since the fraudulent email came from the seller’s agent.

We don’t think it can happen to us, until it does. And if it does, all parties in the transaction may be held liable. Are you ready for it?

“All defendants had a duty to protect them from the losses.” We all have the duty to protect our clients. That’s why it’s so important to do business with a title company who can secure you and your clients. Agencies in the Florida Agency Network are among the Nation’s top 1% in security, compliance and innovative technology. We work hard behind the scenes to make sure everything runs smoothly, and your clients are protected.

For more information on how we can secure your closing, contact us at info@flagency.net or visit any of our offices.

The post Who’s responsible for wire fraud? appeared first on Florida Agency Network.

Source: Flagency


FDFS Implements New Ruling on Unlawful Inducements

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The Florida Department of Financial Services has adopted a new rule (Rule: 69B-186.010) regarding “unfair methods of competition and unfair or deceptive acts or practices in the transaction of title insurance.” The rule goes into effect on February 9, 2016 and will ensure the playing field within the title industry continues to have balance.

The ruling details practices and activities that are deemed unfair and unlawful. Some of the activities listed include:

  • Providing membership in any organization, society, association, guild, union, alliance or club at a discount, reduced rate, or at no cost to a referrer of settlement service business.
  • Sponsoring and hosting, or paying for the sponsoring and hosting, of open houses for real estate brokers or real estate sales associates to promote their listings.
  • Paying advertising costs to advertise and promote the listings of real estate brokers or real estate sales associates via publications, signs, emails, websites, web pages, banners, or other forms of media.

While some of the mentioned activities are vague, the FDFS makes the seriousness of each offense known.

To read the full list of illegal activities and the ruling, click HERE.

The post FDFS Implements New Ruling on Unlawful Inducements appeared first on Florida Agency Network.

Source: Flagency