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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 March 2025 J O U R N A L estate transaction, and more than 1 in 4 consumers are the targets of fraud. The study also finds that the U.S. homeowner population has unequal vulnerabilities, with higher risk variables according to age, region, and experience. Key findings from the State of Wire Fraud report: • Some 52% of consumers are "not aware" or only "somewhat aware" of the risks of wire fraud at the start of a real estate transaction. • Only 47% of consumers were in- formed about the risks by their real estate professionals at the start of the process. • Consumers aged 55 and older are 2x more likely to be unaware of wire fraud risks compared to those who are 44 and younger. • First-time consumers look most often (35%) to their real estate agent to pro- tect them from wire fraud, while expe- rienced consumers look most often to their title company or attorney. • Consumer awareness, wire fraud education, and victim rates vary significantly from state to state. • Overall, 79% of consumers are will- ing to pay more to work with real estate providers who prioritize their security from wire fraud. "The entire CertifID organization is rooted in our mission to be a trusted resource for real estate and title profes- sionals and the customers they serve, to help keep their money out of the hands of criminals," said Tyler Adams, Co-Found- er and CEO of CertifID. "This report identifies areas of vulnerability that require greater focus and investment. We believe that consistently adopting strong security strategies, tools, and practices as a business community can make us a safer industry to serve American homeowners." Unfortunately, fraud is now a com- mon occurrence in the United States According to Consumer Reports, about half of all Americans have personally experienced a cyberattack or attempted digital swindle. In addition to being more frequent, these cyberattacks are also getting bigger. Last year, the FBI IC3 received reports of cybercrime damages over $12.5 billion, a 22% increase in yearly losses. Fraud and scams account for the majority of the losses reported to the IC3. With damages from business email compromise (BEC) reaching around $500 million yearly, real estate has been recognized as an especially vulnerable target. Many Consumers Lack Awareness Surrounding Wire Fraud For a number of years, the U.S. hous- ing market has been difficult to navigate for many. Both the housing supply and affordability are at all-time lows, while interest rates are still at all-time highs. In most markets, the median sale price of an existing home is almost double what it was before the pandemic. Now, wrap potential real estate wire fraud into the mix and it just further complicates the entire process. One of the primary issues affect- ing Americans is that many lack the awareness or knowledge of what real estate wire fraud is, how easily it can happen, and the potential indicators for identifying it. Many homebuyers and sellers simply don't know that wire fraud "is a thing." An estimated 52% of 1,500 home- buyers and sellers in the U.S. who participated in a recent Certif ID poll said they were "not aware" or only "somewhat aware" of the hazards of wire fraud prior to the closing process. In contrast, according to the previous year's research, some 51% of respon- dents were "not aware" or "somewhat aware." This implies that within the past 12 months, there hasn't been any discernible increase in general consum- er knowledge of the issue. Per the report, consumers aren't being educated about the risks early or often enough. Consumers cannot rely on a homebuyer or seller coming across a news story or report regarding real estate fraud. It's important to provide con- sumers with education more regularly so they can avoid the potential risks altogether. Just 49% of homebuyers and sellers said their real estate agents first informed them about wire fraud. For Note: N = 1,485 total responses across all states.