The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.


CUNA issues alert on HELOC wire fraud

New round of attacks prompts cautions on data

CUNA Mutual Group issued an alert this week regarding a wave of fraud that originates from home equity lines of credit and requests wire transfers be sent to construction company accounts. 

Wire transfer fraud involving HELOCs first surfaced in 2006, but this appears to be a new round of attacks that are hitting credit unions nationwide, according to the risk alert. 

After mortgages are filed and become public record, cybercriminals scrape data from the public documents to learn where members have HELOC accounts from which they can steal. 

Recent frauds have been conducted by requesting wire transfers be sent to accounts in the name of construction companies to make it look like advances for home improvement projects. In certain cases the companies are legitimate, and are used as "money mules." 

The fraud incidents featured a number of common traits, including: 

  • Fraudsters contacting credit unions directly to change member profile information, including addresses, phone numbers or email accounts; 
  • Online accounts are taken over entirely, allowing the fraudsters to manipulate members' online banking services. Once this occurs, they can change profile information or transfer funds from the HELOC into a share draft account, reducing the chance that a credit union employee would notice suspicious activity; 
  • Wire requests received by fax with accurately forged signatures, which they find on the HELOC documents they search out online; 
  • Member phone numbers are call-forwarded by the criminals, or callbacks by the credit union are forwarded to the criminals; and 
  • Fraudsters build a profile of member information from what they can gather on a member through online sources, and when a credit union employee asks the criminal to verify certain information, the criminal can give the correct information.

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