The eClosing process is one of many pieces of the title insurance and real estate industry that has become the target of increasingly sophisticated cyber criminals.
Nate Niemi, vice president of product and chief technology officer at CloseSimple, told The Title Report what he considers to be both the greatest cybersecurity concern and most significant benefit within the eClosing space.
“Aside from the risk of data compromise and ransomware attack, which affects many industries, I think the largest cybersecurity concern and benefit are around the same thing; identity verification,” he said. “This dual nature of identity verification underscores the complexity of securing eClosing transactions. While identity fraud, particularly seller impersonation, poses a severe risk, the implementation of remote online notarization (RON) offers a powerful tool to mitigate this threat. Seller impersonation fraud is hitting the industry hard, but RON can be a great tool to combat it.”
Consistency and automation are key factors in safeguarding eClosing transactions against fraud. Niemi emphasized consistent processes and automation when using eClosing tools ensure all transactions are vetted for fraud risk.
“This shift (towards automated and consistent processes) not only reduces the likelihood of fraud but also provides a valuable audit trail in the event of a breach,” he said. “The recording and documentation of all aspects of an eClosing allows for follow-up investigations should a fraudulent transaction slip through an organization’s controls. This documentation can be instrumental in identifying new warning signs and strengthening future transactions.”
For more from Niemi and Dax Junker, CEO of Title Clearing & Escrow, on how the industry is adapting to evolving threats while leveraging both technology and human intuition in securing transactions, read the entire story in the eClosings Innovations report. Download your free copy today.