CHCP Wire Transfer & Fraud Prevention 5

Question 1

Which organization operates the IC3 (Internet Crime Complaint Center) where wire fraud victims should file reports?

Accepted Answer

The FBI

Answer

The FBI operates IC3, which accepts online complaints about internet-enabled crime including real estate wire fraud, and coordinates with law enforcement on recovery efforts.

Question 2

A title company's written information security plan (WISP) should be reviewed and updated at minimum:

Accepted Answer

Annually or whenever significant operational changes occur

Answer

Best practices and many state regulations require annual WISP reviews and updates whenever significant technology, personnel, or process changes affect the security environment.

Question 3

A fraudster sends a buyer an email with a PDF attachment containing 'official' closing wire instructions. The PDF appears to come from the title company. What best practice would have prevented this attack?

Accepted Answer

Establishing a policy that wire instructions are only valid when verbally confirmed via a known phone number

Answer

A firm policy that wire instructions must be verbally confirmed via a pre-established phone number eliminates the risk of fraudulent emailed PDFs being acted upon.

Question 4

Which party bears primary legal responsibility for funds wired to a fraudulent account due to unverified email instructions?

Accepted Answer

Typically the party that relied on unverified instructions, as liability varies by state and circumstances

Answer

Liability for wire fraud losses is complex and fact-specific; courts often assign responsibility to the party that failed to verify instructions, though outcomes vary significantly by jurisdiction.

Question 5

Multi-factor authentication (MFA) on email accounts used by closing professionals is important primarily because:

Accepted Answer

It prevents unauthorized access even if login credentials are compromised

Answer

MFA adds a second verification layer so that stolen passwords alone cannot grant criminals access to email accounts, reducing the risk of account takeover used in BEC fraud.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP Wire Transfer & Fraud Prevention 5