How to Protect Title Companies from Wire Fraud & Cybersecurity Threats | Title Agents Podcast Ep5

Episode Summary

Tom Cronkright shares his journey from wire fraud victim to founder of Certified, a technology platform protecting real estate transactions. This episode covers how cybercriminals have evolved their tactics using AI, why banks aren’t liable for most wire fraud, the gaps in cyber insurance coverage, and exactly what to do in the first hours after a fraud occurs. Tom explains seller impersonation fraud, payoff fraud, and how identity verification technology is becoming essential for every title transaction in America.

About Tom Cronkright

Tom Cronkright is the CEO of SunTitle, one of Michigan’s largest independent title agencies, and Executive Chairman of Certified, a fraud prevention technology platform backed by Arthur Ventures. After his agency was victimized by wire fraud in 2015, Tom testified as a lead witness for the Department of Justice in prosecuting the North American syndicate of the Nigerian Black Axe. A licensed attorney, real estate broker, and title insurance producer, Tom is a nationally recognized expert on cybersecurity and wire fraud in real estate transactions.

Key Takeaways

• Wire fraud is a self-insured risk because cyber insurance policies typically cap social engineering coverage at $100,000 to $250,000, far below most transaction values.
• Banks have no legal duty to flag unusual account activity, verify account name matching, or even respond to victim fraud inquiries under current UCC Article 4A provisions.
• The first 24 hours after discovering wire fraud are critical for recovery; immediately contact the receiving bank, file an IC3 report, and alert the Secret Service field office before filing local police reports.
• AI has eliminated the need for domestic cybercriminals in real estate fraud, allowing overseas actors to craft perfect emails and impersonate sellers without detection triggers.
• Seller impersonation fraud on vacant land now requires identity verification before opening title, as fraudulent driver’s licenses and passports cost only $150 on the dark net.
• Voicemails and video calls can no longer be trusted for payment instructions because voice cloning requires only 10 seconds of audio and deepfake video is now accessible to criminals.
• Title agencies should establish relationships with their local Secret Service office and create a documented incident response plan that includes bank contacts and notification sequences.

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