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Expanding Protection to Buyers

Tom Cronkright, Published on July 10, 2019

We’re super excited to announce that we’ve extended our buyer-side coverage! If you take in earnest money deposits by wire, you are now able to use CertifID to safeguard the EMD and use the same request for their cash to close wire. If you want to find out more, watch the full video.

Full video transcript:

Hi, this is Tom with CertifID. And I wanted to walk you through what we’re seeing as far as ENO and cyber-insurance, in particular recently this year. So with all of the cyber-fraud losses, wire fraud, ransomware, all these things that they’re hitting us with, we’ve seen a pivot on the ENO side of insurance that they’re adding specific exclusions for anything computer or cyber-fraud or cyber-crime related. So you just need to watch out for that.

It feels very much like a kind of pre-computer era ENO policy that covers the basic blocking and tackling of what you need to do as an attorney or title agent or lender or real estate agent or broker. Right, those kinds of core things that you have to do based on your licensing requirements or statute or whatever happens to be. And then you pivot over to cyber. So cyber covers everything else. And with cyber, you have a bunch of different riders. You have social engineering, and phishing, and cyber-crime, and cyber-loss. And then you get to third parties.

So what I wanted to make sure that you’re aware of is, there’s a bit of a jump ball right now on third-party loss. And what I mean by that is a situation where let’s say another transaction participant’s email is compromised. And you send your wiring information to them, and then all of a sudden that ends up in the hands of the customer, and the customer activates on it, and they’re defrauded. Well, you sent to the transaction participant, the trusted pathway, but they were compromised. But yet you may be responsible because of that person’s negligence, or failure to protect their own email account, or other digital property.

So the question there is the third party, the person that wired the funds, so to speak, is the victim because your server wasn’t hacked. Your email wasn’t compromised. They weren’t in your system, they were in somebody else’s system. So the question that you need to ask and ask it in very clear terms is, well, what happens if there’s a third-party loss and I’m spoofed. And they think they’re dealing with me or they think the information came through a trusted pathway that I sent them? But ultimately it wasn’t me at all. And we’ve had this on our brands, and I know that many of you watching this have had this on yours.

I just want to make sure you’re covered because candidly, CertifID is meant to bridge that gap that we’re seeing in the market, where there’s this kind of black hole, there’s this weird area between the ENO and the cyber. So I do invite you to check out CertifID. Here’s a link to engage with us and allow us to show you how you can securely send and confirm the authenticity of wiring information before the money is sent to you or you move money out of your escrow account. So with that, I hope you found this helpful and I look forward to connecting live soon. Take care.

AUTHOR

Tom Cronkright

CEO and Co-Founder @ CertifID

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