Safeguards Ward Off Fraud

Cybercrime is a growing problem that will likely not go away. Because of this and the Consumer Financial Protection Bureau’s regulations to protect personally identifiable financial information, title companies are increasing their security measures to provide greater protection to their clients.

One particular safeguard title companies have implemented is the use of encrypted emails.

Email encryption involves concealing the content of email messages in order to protect information from being read by someone other than the intended recipient. Upon receipt of the email, the recipient must authenticate it by entering a code or password or by using a certificate to decode the email. In other words, the recipient must “unlock” the email to view the contents.

Without encrypted emails, sensitive consumer or personal data is at risk and can be accessed by hackers regardless of whether email messages are stored, cached, or archived. Additionally, even if an unencrypted email is sent on a secured server, hackers can gain access to the information contained in the email.

Because title companies handle nonpublic personal information (NPI) like social security numbers, personal tax ID numbers, and financial information, they are required to protect that information. Thus, implementing the use of encrypted email is a necessary precaution and best practice.

While information such as when close of escrow is to occur, how much money is needed to close, and wiring instructions is not considered NPI, the increase in cybercrime as it relates to interception of wired funds in real estate transactions necessitates that this information be kept private.

Hackers have exploited information from unencrypted emails by stealing information and redirecting wired funds for their own financial gain. This results in a consumer’s loss of funds and potential loss of a sale and commission. Accordingly, the use of encrypted email assists in the prevention of this type of cybercrime.

Although the additional step to encrypt or “unlock” an email may seem like a nuisance, the precaution is being taken for your benefit, as well as your client’s. Namely, encrypted emails help preserve confidential information and prevent hacker’s from intercepting information which could have damaging results.

Therefore, the next time you receive an encrypted email, understand that the “inconvenience” provides additional protection for you and your client.

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