Fidelity & Crime Insurance

Our Fidelity policy can provide coverage for Employee Dishonesty and includes owners as employees. We also cover Money and Securities taken by other means, Forgery losses and some computer exposures. Any weakness in your company’s financial controls can be targeted. You select the level of protection you feel is best.

Examples – the most common cause of loss is employee dishonesty, or the trusted employee’s “hand in the till”. That, and outright theft, or diversion of funds into an employee controlled account are two classic examples of this exposure. More recently, reliance on fraudulent, forged, counterfeit or altered documents, in good faith, (at a closing, for instance) has been the source of significant losses and claims.

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    What If Your Email Account Was Hacked?

    Do you have an action plan in place in the event one of your company’s email accounts is hacked? A recent incident with a Midwest-based title and settlement agent is prompting us to alert our clients to this issue. The particular company had several email addresses that handled a large number of files, for example, closings@abctitle.com. Unbeknownst to the title company’s tech team, and their third-party managed service provider, this email address had been hacked. Every time an email was sent from this account, a BCC (blind carbon copy) was also sent to an out-of-network email address. For several months, all the closing and banking information sent from the main account was also sent to an unsecured, unknown account. Once the title company discovered this breach, they were required, by state law, to notify each person whose information was unknowingly sent to this unsecured email address.This notice was required for everyone in the company’s database who could have been affected, whether or not the leaked information had been used, and was required to be completed within 30 days of the data breach being discovered. The title company never found out who received the unsecured emails—or if the responsible parties ever made any attempt to profit from the stolen information. The cost for these required notifications is $336 per person/record, on average, for the financial services industry and $274 per record for the generic services industry (according to the 2017 Cost of Data Breach Study by Ponemon Institute). Bear in mind, […]

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    What You Can Do To Fight Wire Fraud

    Statistics recently gathered by Beazley Insurance indicate that in 2017 the average theft through fraudulent wiring instructions was $357,000. Some thefts were only a few thousand dollars; however, others were in the millions. Fraudulent wire instructions have become a significant threat to the well-being of title and closing agents. Even if your firm does not handle or wire closing funds, defrauded consumers and their attorneys may seek to involve all parties associated with the transaction. What are you doing to prevent fraudulent wiring instructions from being followed? How are you helping potential customers feel confident that you are safeguarding their money? Here are some risk management practices you might want to consider: Don’t rely on emails to receive wire instructions. Most title agencies have implemented procedures to call and verify email instructions that are received. If your clients’ only option is to email the wire instructions, you should first call to verify the account numbers. You should also know that talented fraudsters may be able to impersonate bank or other office personnel, so be wary. Make doing business with people you know a preference. While unrealistic for some, many agents manage their risk by predominantly dealing with attorneys, closing agents, and banks they know. Inform your clients, as many of them are not aware that fraudulent wire instructions are an issue. If they play any role in the transfer of their funds, be sure you have communicated clearly with them about this threat to their financial well-being. Aggressively educate your staff… Bear in mind that when […]

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    Prevent Mortgage Fraud and Other Claims

    Preventing Mortgage Fraud – and the Subsequent Claims In our Professional Liability department, we have seen the lasting impact the continued weakness of the real estate market has had on our many Title Industry Errors and Omissions clients. While there seems to be a light at the end of the tunnel (finally!), the long term impact on the underwriting of these policies will be felt for a long time. Many of our insured attorneys…
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Fidelity & Crime Application

This comprehensive application provides an overview of the risks and liabilities with respect to Title Agent Fidelity & Crime Insurance. Additional questions or details may be requested upon review.