Title companies play a key role in arguably the most important sector of the U.S. economy, and because of this are classified as “financial institutions” by the FTC. There is no question that handling such huge sums of money brings significant burdens to the title company industry, and the evolving expansion of cybercrime makes it more and more challenging to protect the assets of a title company.
Additionally, the governing body for title companies, ALTA, lists protecting non-public personal information as one of the pillars of best practices for title companies. This is a huge responsibility for title companies, and failure to comply can result in customer complaints, reputational damage, lawsuits, and theft of funds. Of course, the cybercriminals have found weak links in the title industry and continue to capitalize on those with their innovative cybercrimes.
Whether it’s against fake wire transfers, theft of customer information, or general malware, title companies must become more cyber-educated and prepared as they are now prime targets for cybercriminals.