Safety and Compliance Flashcards

A buyer forwards an email, supposedly from the title company, with updated wiring instructions two days before closing. What should the transaction coordinator advise first?

Answer: Call the title company at a phone number from an independently verified source to confirm

Verifying by phone through an independently sourced number is the standard defense against wire fraud, because a reply goes straight back to a fraudster.

Which federal law requires financial institutions to protect consumers' nonpublic personal information, and affects how settlement parties handle client data?

Answer: Gramm-Leach-Bliley Act

The GLBA Safeguards and Privacy Rules govern how nonpublic personal financial information is protected and shared.

A TC needs to collect a seller's Social Security number for FIRPTA and 1099-S purposes. What is the most appropriate method?

Answer: Through an encrypted, secure document portal

Sensitive identifiers should only be sent through encrypted, access-controlled channels.

Where should a victim of real estate wire fraud file a report with the FBI?

Answer: Internet Crime Complaint Center (IC3)

The FBI's IC3 takes reports of cyber-enabled crimes, including business email compromise and wire fraud.

What is the main security benefit of enabling multi-factor authentication on a TC's email and transaction management accounts?

Answer: A stolen password alone is not enough to access the account

MFA requires a second factor, so compromised credentials alone can't be used to take over the account.

A fraudster gains access to an agent's email and quietly watches transaction threads to send fake instructions at the right moment. What is this scheme called?

Answer: Business email compromise

Business email compromise uses a hijacked or spoofed email account to send fraudulent payment instructions.

A buyer realizes an hour after wiring their down payment that the instructions were fraudulent. What is the most urgent step?

Answer: Contact the sending bank right away to request a wire recall, then report to law enforcement

Funds are most recoverable in the first hours, so the sending bank must be contacted immediately to start a recall.