All right... wire fraud is rampant in the real estate industry. We acknowledge and accept this as a reality of business and the world of online communications.
In Texas, we are observing that Title companies are struggling to solve for this issue, and implementing office-level security measures in an effort to prevent tampering or hijacked instructions in regard to incoming transaction funds as well as disbursements.
The problem with these measures is that they typically require transaction parties and licensees to jump through additional (and complicated) hoops that virtually defeat the purposes of wiring convenience all together. We see title offices inventing their own forms and password protecting them so they cannot be completed digitally, requiring wet-signatures (and even notarized signatures), or requiring forms to be completed in their offices by individual appearance. We get it. They don't want the risk of using wires and the processes being created are literally intended to discourage this method to reduce risk.
CALLING ALL TECH / FINANCIAL GURUS / ENTREPRENUERS
This is crazy... like throwing the baby out with the bathwater crazy. There has to be a better way for people to give each other wiring instructions.
We need a solution that:
- is secure and offers assurance of authenticity / accuracy of instructions
- is universal - could be adopted as an industry standard
- is as convenient to use as email - compatible with smart phones, tablets, and is paperless / virtual
- is affordable, and can be integrated easily into the title process