Fighting Back Against Fraud: Catching 1 in 250 Scams Before Closing

Fighting Back Against Fraud: Catching 1 in 250 Scams Before Closing

From sophisticated wire fraud schemes to elaborate identity theft, fraudsters are constantly looking for weaknesses in the system. The consequences? Devastating financial losses, reputational damage, and immense stress for everyone involved.

For too long, the industry has relied on reactive measures, often discovering fraud only when it's too late; at the closing table, or even after funds have been wired to a scammer.

But what if you could turn the tables and catch these criminals before they ever get that far?

We've been working closely with a national title company that is doing exactly that, and their results are nothing short of incredible.

The High Cost of Waiting: Why Early Detection Matters

Before implementing a proactive fraud detection system, many title companies operate with a significant blind spot. They might open a transaction, begin processing, and only much later in the workflow (during a final verification step or even at closing), uncover that the seller is not who they claim to be. By then, significant time, effort, and resources have been expended. The emotional toll on staff and clients can be immense.

The cost isn't just in lost funds; it's in wasted operational expense, damaged trust, and the time-consuming process of recovery and investigation. The industry reports billions in attempted fraud losses annually, with a significant portion succeeding.

A Game-Changer: Catching 1 in 250 Fraudulent Transactions

One of our customers, a leading national title company, made a strategic decision to fight fraud head-on. By implementing CloseSimple's "Early Scan" with ID verification, they are now catching a staggering 1 in every 250 transactions that they open as fraudulent.

Think about that for a moment: if a company handles hundreds or thousands of transactions each month, preventing even a handful of these fraudulent closings translates directly into millions of dollars saved annually. This isn't just about financial protection; it's about peace of mind and upholding the integrity of every single transaction.

How "Early Scan" with ID Verification Works

The power of this feature lies in its proactive and automated nature. We call it Early Scan with ID Verification, and here's how it operates:

1. Passive Upfront Scan: As soon as a transaction is opened and saved with initial seller information, CloseSimple begins a passive, automatic scan in the background. Your staff doesn't need to lift a finger.

2. Automatic Verification: This initial scan works to automatically verify the seller's information against multiple data points.

3. Flagging & Escalation: If the passive scan detects any inconsistencies, red flags, or potential fraud indicators, the system doesn't stop there. It automatically assigns a robust ID verification process for that seller. This ensures a deeper, more rigorous check when it's most needed.

4. No Staff Intervention: The beauty of this system is its simplicity for your team. It happens automatically when the file is opened and initial information is saved. Your staff isn't burdened with extra steps; they are simply alerted to potential fraud early in the process, allowing them to take appropriate action before a crisis unfolds.

Why Early Detection is Your Best Defense

By identifying fraudulent sellers at the earliest possible stage—as soon as the transaction is opened—title companies can:

• Prevent Financial Loss: Stop fraudsters before they can gain access to funds.

• Save Operational Costs: Avoid wasting countless hours of staff time on fraudulent files.

• Protect Reputation: Maintain client trust by proactively safeguarding their transactions.

• Enhance Security: Implement a robust, automated layer of defense against evolving fraud tactics.

The success of this national title company proves that proactive, automated fraud detection isn't just a nice-to-have; it's an essential component of a modern, secure closing process. In an industry where the stakes are so high, knowing who you're working with from the very beginning is the ultimate protection.

Don't wait for fraud to strike.

See how CloseSimple can help you implement Early Scan and ID Verification to protect your business and your clients.

Schedule a demo today.