FundingShield's wire fraud prevention solutions will now be available to Tata Consultancy Services' clients, thanks to a partnership announced Tuesday.
The collaboration between the fintech and TCS, a global company that provides IT and consulting services to over 80 companies in the financial services sector, came to fruition because of ongoing fraud and cybersecurity concerns, said Ike Suri, CEO of FundingShield.
TCS' clients will have direct access to FundingShield's risk-mitigating ecosystem, allowing them to keep their data, bank account verifications and transactions safe, a press release stated. The fintech company offers coverage against wire and title fraud, settlement risk, closing agent compliance and cyber threats.
This partnership will by proxy also benefit borrowers by helping to keep their down payment and data protected, added Suri.
"If homebuyers show up to the altar robbed then they are out of money and lenders are out of money and so borrowers are forced to sue in hopes that they get their money back," he said.
The prevalence of fraud in a mortgage transaction obligates companies to implement such technology to protect their clients, said Santosh Ananthakrishnan, global head of mortgage strategic initiatives at TCS, in a press release.
"Wire fraud prevention has become a mandatory capability as part of any mortgage solution, protecting lending institutions from multi-million dollar risks to the third-party closing, title, and settlement entities," Ananthakrishnan said.
Fraud attempts grew in 2022 and are expected to continue their upward trajectory, according to a NexisLexis report published in May. Factors contributing to that forecast include economic uncertainties and the perception that small and midsize businesses are an easier target than consumers and online or mobile channel transactions.
Market strains can push lenders to cut costs, which may include shrinking the workforce that combats fraud or investing less in anti-fraud technology, the report said.
A separate report published by the Federal Bureau of Investigation found that business email compromise scams related to real estate set a record for dollar losses in 2022.
The 2,284 complaints received last year amounted to losses totaling $446.1 million, compared with $430.5 million in 2021.
