CHCP Wire Transfer & Fraud Prevention 2

Question 1

A buyer receives an email from what appears to be their settlement agent with updated wire instructions the day before closing. What should the buyer do?

Accepted Answer

Call the settlement agent using a phone number from the original contract or company website to verify

Answer

Buyers must verify any wire instruction changes by calling a known, independently verified phone number — never by responding to the suspicious email.

Question 2

Which red flag is most commonly associated with Business Email Compromise (BEC) in real estate transactions?

Accepted Answer

Last-minute changes to wire instructions received by email

Answer

BEC fraud typically involves fraudulent emails containing last-minute wire instruction changes designed to redirect funds to criminal accounts.

Question 3

What does the term 'positive pay' refer to in the context of preventing wire fraud?

Accepted Answer

A bank service that matches issued checks or wires against an authorized list before processing

Answer

Positive pay is a bank fraud-prevention service that requires companies to pre-authorize transactions, flagging mismatches for review before funds are released.

Question 4

Under FinCEN's Geographic Targeting Orders (GTOs), certain all-cash residential purchases require title companies to report the beneficial owner when the purchase price exceeds what threshold in high-risk metros?

Accepted Answer

$300,000

Answer

FinCEN GTOs generally require reporting for all-cash purchases above $300,000 in designated high-risk metropolitan areas, though thresholds can vary by order.

Question 5

A closing professional discovers a wire of $250,000 was sent to a fraudulent account. What is the FIRST action they should take?

Accepted Answer

Contact the sending bank immediately to initiate a wire recall

Answer

Time is critical — contacting the originating bank immediately to initiate a recall (SWIFT recall or domestic SWIFT recall) offers the best chance of recovering misdirected funds.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP Wire Transfer & Fraud Prevention 2