This collaboration aims to enhance the protection of lenders, home buyers, and sellers against the growing incidence of wire and title fraud. In response to the increasing prevalence of cybersecurity risks, lenders are placing greater emphasis on data integrity to detect and prevent potentially fraudulent activities.
According to FundingShield, the company has the industry's largest live ecosystem of service provider source bank data, covering more than 95% of the market. Through this partnership, TCS clients will gain direct access to FundingShield's ecosystem, enabling them to uphold high standards when it comes to data integrity, bank account verification, and counterparty compliance while achieving cost savings and risk mitigation.
Officials from Tata Consultancy Services emphasised the significance of wire fraud prevention in the mortgage industry, highlighting its role in safeguarding lending institutions from substantial financial risks associated with third-party closing, title, and settlement entities. They also expressed enthusiasm about integrating FundingShield's capabilities to provide superior verification services to TCS's financial services customers.
Representatives from FundingShield underscored the advantages of collaborating with TCS, citing their global presence, business expertise, and established relationships with major financial institutions. They also brought up FundingShield's proficiency in automated, real-time source-data verification, noting its potential to benefit US banks, government-sponsored enterprises (GSEs), and various other sectors where TCS holds extensive domain knowledge and experience.
FundingShield is a US-based fintech offering B2B and B2B2C solutions with transaction-level coverage against wire and title fraud, settlement risk, closing agent compliance and cyber threats while reducing operating costs and improving asset quality for US real estate investors and US mortgage finance companies.
In June 2023, FundingShield partnered with Mastercard to use the Open Banking technology provided by the latter's subsidiary Finicity, for data sharing. According to nationalmortgagenews.com, a business email compromise is a form of wire fraud in which the victim is tricked into sending money to the perpetrator using an electronic funds transfer.
This type of wire fraud set a record for dollar losses related specifically to real estate scams last year at USD 446.1 million. However, it’s worth noting that the actual figures can be higher as many victims do not report this crime.
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