Wire fraud remains one of the title industry's most pressing threats today. For many title agents, the reality of cybercrime doesn’t fully hit until they become a victim. That was the case for Michael Ruder, owner of Legacy Settlement Services, LCC, who found himself in an alarming situation when his company was targeted and hit with wire fraud in 2022. What followed was a challenging and eye-opening experience that ultimately reinforced the value of strong industry partnerships—specifically, the support he received from WFG National Title Insurance Company.
The Attack: How Fraud Found a Way In
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Michael Ruder
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"We were hit with wire fraud here at Legacy Settlement Services," Ruder recalls. "A hard money lender we were working with had been hacked. The bad actors were sitting in their email inboxes, and their email security was essentially nonexistent. At the time, I thought if we were secure, we were good, but I quickly learned that’s not how it works. You have to be careful not just about your own security, but also about how you're receiving and sending information."
The fraudulent activity involved two transactions totaling approximately $500,000. Legacy Settlement Services had received fraudulent payoffs from the compromised hard money lender. As a result, the funds were unknowingly wired to the wrong accounts. The realization of what had happened set off a chain of events that forced Ruder and his team to confront the harsh reality of wire fraud.
"We panicked. We had never experienced this before," he admits. "For a moment, I thought I would have to take my personal money and cover the loss myself. That would have been a huge mistake, as I later learned through WFG’s guidance."
WFG Steps In
Recognizing the severity of the situation, Ruder immediately turned to WFG for help.
"The first thing I did was call WFG. That first call completely alleviated my panic because the team at WFG laid out exactly what to do," he says. "They outlined the protocol I should follow, which involved notifying my underwriter, which is WFG, my insurance carriers and the FBI. They walked us through every step, and it felt like we had a real partner in this crisis."
Beyond guidance, WFG provided hands-on support in facilitating the process of recovering funds and mitigating damage. Through WFG’s assistance, Ruder and his team were connected with legal experts and cybersecurity professionals who helped them push back against an initial denial of their cyber insurance claim.
"WFG helped us research and engage with attorneys who fought hard for us and overturned our cyber insurance denial, ultimately getting us a significant portion of the funds back," Ruder explains. "Additionally, WFG connected us to the correct FBI and fraud recovery unit, helping us recover another portion of the funds. That was a blessing because normally the money isn't still sitting there."
"With WFG’s guidance and unwavering support, we were able to navigate through the complexities of the situation, ensuring our business remained stable and secure. That level of partnership—I don’t know where else you’d find that in this industry."
Strengthening Security for the Future
After the crisis was resolved, WFG didn’t just walk away. Instead, they helped Legacy Settlement Services build a more robust cybersecurity framework to prevent future attacks.
"Not only did we get this resolved with WFG’s help, but afterward, they came in and worked with us to ensure it didn’t happen again," says Ruder. "We developed 'Legacy Protection 2.0'—a complete overhaul of our security protocols, technology, and processes. And since then, despite multiple attempts, we haven’t been hit with wire or check fraud again. We catch fraudulent attempts all the time now, and we’re in a much stronger position."
One key component of their new security approach was integrating payoff verification technology.
"WFG’s experts helped us identify a top technology security provider, and deploying their solutions has been a game-changer," Ruder says. "Now, every single payoff, no matter how sure we are that it's legitimate, goes through a secure verification process. That alone has saved us from potential fraud attempts."
In addition to leading his company through this transformation, Ruder is also a member of WFG’s recently launched Agent Advisory. This advisory board plays a key role in shaping initiatives that help WFG’s title agents navigate the industry's evolving challenges. More information on WFG’s Agent Advisory and its latest initiatives can be found here.
Protect Your Business with WFG
Ruder’s personal experience at Legacy Settlement Services is a stark reminder of the ever-present dangers of wire fraud. For title agents, the question isn’t if they’ll be targeted—it’s when. The difference between devastation and recovery often comes down to having the right partners in place.
"WFG didn’t make me feel alone. They made me feel like they were in it with me," Ruder emphasizes. "When we were at our lowest point, they showed me what a real partnership looks like. That’s why I’ll never stop doing business with WFG, and I tell every title company that they should have WFG in their rotation of underwriters."
For title agents who want to learn how to protect their business from cyber and wire fraud threats, WFG offers extensive education, resources, and cybersecurity solutions. Contact WFG today to learn more about how they can help your company mitigate risk, strengthen security, and build a resilient future.
Additionally, WFG is launching its revamped and expanded Cyber411 program this month, providing title agents and real estate professionals with comprehensive cybersecurity awareness and safety training. Through Cyber411, professionals can sign up for complete and a la carte services on a per-seat basis, with as few as five seat licenses. The program includes help desk support, phishing simulation, and ongoing cybersecurity training to help title professionals stay vigilant against evolving cyber threats. Don’t wait until it’s too late—reach out to WFG today to learn more about Cyber411 and how it can help safeguard your business from cybercrime.
About WFG National Title Insurance Co.
WFG National Title Insurance Company (WFG), a Williston Financial Group company, is a national underwriter and leading provider of title insurance and real estate settlement services for commercial and residential transactions nationwide. Built around the directive to “communicate, collaborate, coexist,” WFG strives to improve the real estate process through the creation and delivery of comprehensive, innovative services and technology solutions that empower and increase transaction transparency for the title agents, real estate professionals, lenders, and consumers it serves. The company enjoys a Financial Stability Rating of A’ (A prime), as assigned by Demotech, Inc. For more information, visit www.wfgtitle.com.