CertifID Launches New Wire Fraud Protection Solution

September 22, 2022

CertifID unveiled a new technology solution to help title and escrow professionals prevent property loan payoffs from being sent to fraudulent accounts.

The new PayoffProtect solution uses machine learning to automate and standardize the mortgage payoff demand letter verification process. In more than 95% of cases, the company’s validation engine software authenticates loan payoff wiring instructions.

PayoffProtect is designed in response to customer feedback about an unaddressed area of vulnerability for real estate wire transfers. The problem PayoffProtect addresses is the sharp increase in fraud surrounding wire transfers made from title companies to lenders in connection with mortgage payoffs. These scams involve fraudsters impersonating the mortgage lender as part of a real estate closing, in hopes of having the payoff wire transfer redirected to the fraudster’s bank account.

“We’ve helped recover nearly $50 million in loan payoff fraud, and now we have the solution to prevent it,” said Tyler Adams, CEO of CertifID. “For large sum loans such as mortgages, payoff wiring instructions verification has remained a laborious and vulnerable process.”

PayoffProtect is coming out of a beta period where it’s already being used with great success by customers including Knight Barry Title, Continental Title Company and Bluegrass Land Title. Before PayoffProtect, these companies manually completed mortgage payoff demand letter statements, and then make phone calls to confirm bank wiring information and ensure insurance compliance before sending a loan payoff wire transfer.

“Verification by phone is frustrating, time-consuming and oftentimes comes to a dead end,” said Rachel Petrach, chief closing and compliance officer at Knight Barry Title. “PayoffProtect allows us to feel comfortable, allows us to sleep better at night, and hopefully reduces a bit of the gray tint in my hair.”

Jessica Tweedy, accounting controller at Continental Title Co., added, “I absolutely love PayoffProtect. It’s the easiest product that’s come about. I have my whole week done in a matter of minutes.”

PayoffProtect is integrated with the many title production software systems.

According to CertifID, the first step to use the software is the only one that requires manual work from the end user. The user inputs the loan details and wiring instructions. After that, PayoffProtect takes over.

After entering the data, the user will receive a “CertifID” status. The CertifID team performs a proprietary investigation and resolution process as needed. Once “CertifID” status is achieved, PayoffProtect provides a valid and safe payoff instructions confirmation form that title company owners are using as their new required standard operating procedure to eliminate the risk of mistakes in their process.

“We will not send a payoff without PayoffProtect,” said Bryan Brown, accounting controller at Bluegrass Land Title.

All transactions utilizing CertifID products are backed by Lloyd's of London, which insures wire transfers by up to $1 million.

In addition to this new service, CertifID also received an additional $12.5 million in funding from Arthur Ventures.

Contact ALTA at 202-296-3671 or communications@alta.org.