Posted By Genady Vishnevetsky - Chief Info Security Officer Stewart Title Guaranty Company,
Thursday, December 12, 2024
The following was originally posted to the ALTA Open Forum Security Buzz.
Cybercriminals are exploiting a system designed for emergencies to steal your personal information. The FBI has issued a warning about a concerning trend: the increasing use of fraudulent emergency data requests (EDRs) by cybercriminals.
EDRs are legitimate tools that law
enforcement uses to obtain information from online service providers in
urgent situations where there isn't enough time to secure a warrant or
subpoena. These requests are usually approved as long as they originate
from a valid law enforcement email address.
Unfortunately, cybercriminals are
exploiting this process by utilizing hacked police and government email
accounts to send fake EDRs. This makes it challenging for companies to
verify the authenticity of the requests, placing them in a difficult
situation.
If a company refuses to comply
with what appears to be a legitimate request, it could have serious
consequences if there is a real emergency. Conversely, if they comply,
it may result in the exposure of sensitive customer information to
criminals.
Examples of This Scheme in Action:
Cybercriminals are selling access
to hacked .gov email addresses, including US credentials, which they
claim can be used for EDRs
One individual, known as
"Pwnstar," is selling fake EDR services, claiming to have access to
government emails from over 25 countries
Another tactic involves the use of forged court-approved subpoenas sent through compromised email accounts
Cybercriminals are even using Kodex, a platform designed to verify law enforcement requests, to make their fake requests appear more legitimate
Verizon's transparency report
indicates a high compliance rate with EDRs, with records being provided
in approximately 90% of cases. This highlights the effectiveness of this
tactic. Financial institutions and cryptocurrency platforms are
particularly concerned about fake EDRs being used to freeze or seize
funds.
Takeaways:
Our data is at risk:
All this means our personal information is more vulnerable than ever.
It's a stark reminder that cybercriminals are constantly finding new
ways to exploit systems, even those designed for emergencies.
Financial institutions are particularly vulnerable:
Banks and cryptocurrency platforms are prime targets for this kind of
scam because fake EDRs can be used to steal money directly from customer
accounts. It's a wake-up call for these institutions to step up their
security measures.
Both law enforcement agencies and
companies need to be more vigilant. Law enforcement needs better
cybersecurity to protect their systems, and companies need more robust
verification processes to weed out these fake requests. This isn't going
away anytime soon, so staying ahead of these criminals is an ongoing
challenge.
If you are buying property in New York City, it is important to request a Property Transfer Meter Reading (or title reading) prior to the closing. To protect yourself from charges incurred by the seller you must obtain the reading thirty (30) days prior to the closing. Buyers should have their legal representative request that the seller obtain this title reading thirty days prior to the closing.
Important steps to keep in mind:
1.Buyers should request a title meter reading from DEP at least a month in advance of the closing. Contact Customer Service to schedule a title reading.
2.Sellers need to stop automated bill payments before the sale is final. Contact Customer Service for more information.
3.Sellers who have opted to participate in the Service Line Protection Program should call (888) 300-3570 to cancel their service line protection coverage.
4.Sellers must unenroll from their My DEP Account before the sale is final to stop receiving leak notifications and paperless bills. Contact Customer Service for more information.
5.Buyers should file a Customer Registration Form. This form provides DEP with the appropriate information for water and sewer bills. Once you are registered, take advantage of online bill payments and sign up for a My DEP Account. A My DEP Account allows you to view your water consumption, detect costly leaks and pay your bills online.
Please note that title readings cannot be issued for accounts with issues related to the denial of access process, theft of services violations, or any other DEP related violations.
An act to amend the real property law and the civil practice law and
rules, in relation to clarifying requirements for acknowledgments,
proofs, oaths and affirmations without the state
Clarifies requirements for acknowledgements, proofs, oaths and affirmations without the state
Establishes the New York state cryptocurrency and blockchain study task
force to provide the governor and the legislature with information on
the effects of the widespread use of cryptocurrencies and other forms of
digital currencies and their ancillary systems, including but not
limited to blockchain technology, in the state.
The caucus expressed this view in a letter written by Reps. Lou
Correa (D-Calif.), Mark Alford (R-Mo.), Tracey Mann (R-Kan.) and
Brittany Pettersen (D-Colo.) and sent to FHFA Director Sandra Thompson on Monday....
... In the letter, the caucus members argue that the pilot — which they said insinuates that title insurance is a “junk fee”
— will cause “irreparable damage” to homeowners and mortgage lenders. A
lack of title insurance “may expose homeowners and lenders to a
heightened risk of future financial loss, or even the loss of their
home,” they wrote.
S4289A OBERACKER Relates to authorizing the county of Otsego to impose an additional mortgage recording tax of 25 cents per $100 of principal debt Same as A 5167-A Tague SUMM : Add §253-z, Tax L Authorizes the county of Otsego to impose an additional mortgage recording tax of 25 cents per $100 of principal debt or obligation.
S5780A OBERACKER Relates to establishing an additional mortgage recording tax in Chenango county Same as A 5849-A Gallahan SUMM : Add §253-z, Tax L Relates to establishing an additional mortgage recording tax in Chenango county; provides for the repeal of such provisions.
S5850C RHOADS Authorizes Seaford Fire District to file with the county of Nassau assessor an application for a retroactive real property tax exemption Same as A 5794-C McDonough SUMM : Authorizes the Seaford Fire District to file with the county of Nassau assessor an application for a retroactive real property tax exemption.
S9291 MAYER Authorizes the City of White Plains to alienate certain property owned by the City of White Plains and operated as the former Galleria of White Plains public parking garage Same as A 10208 RULES COM Paulin SUMM : Amd §§1 & 2, Chap 471 of 2023 Relates to the parcels that may be alienated by the City of White Plains and operated as the former Galleria of White Plains public parking garage.
Two bills were signed by Governor Hochul over the weekend.
A9946 Paulin
Provides for the refund of penalties accrued on certain real property taxes in the town of Scarsdale, county of Westchester
Same as S 9202 MAYER
SUMM : Provides for the refund of penalties accrued on 2023-2024
real property taxes due to the specific failure by the USPS to deliver
bills to owners in the town of Scarsdale, county of Westchester
Bill S8343 / A9261 was signed and chaptered. It takes effect immediately.
Extends
the authorization of the county of Wyoming to impose a county recording
tax on obligations secured by a mortgage on real property
SUMM : Amd §2, Chap 185 of 2005 Extends the authorization of the
county of Wyoming to impose a county recording tax on obligations
secured by a mortgage on real property from December 1, 2024 to December
1, 2027
When you buy a home, title insurance is one of the closing costs
you’ll likely see listed. But what is the purpose of title insurance?
The title indicates your legal right to own the home, and it’s
transferred from the previous owner. Sometimes, there are issues with
the title that could affect your ownership.
Title insurance can protect you from the financial impact that comes
with a defective title. Let’s take a look at title insurance and how it
protects you during a home sale.
Vault’s Viewpoint
Title insurance protects you from financial damages that arise when
someone else has a previous ownership claim on your property.
You normally pay for title insurance as a single premium as part of your mortgage closing.
Title insurance doesn’t protect you in the event that you caused the issue after buying the home.
Title Insurance: What It Is and How It Works
In general, the title indicates ownership of a property. When you buy a home,
a title company usually searches the ownership records to determine
whether the title is clean and that the current owner does, in fact, own
the home and has the legal right to pass it on to you.
However, even when a title search is completed, there’s no guarantee
that someone else doesn’t have a claim to the property. In fact, a title
claim can come up years after you’ve owned the home. Some of the common
defects that might appear on a title’s history include:
Liens. A lien
is a claim against the property for unpaid bills, such as property
taxes, mortgage payments or even contracting work done before you bought
the house and that wasn’t paid for by the previous owner.
Encumbrances. In addition to liens, other types of
encumbrances might include specific zoning laws or homeowners
association requirements that can impact how you use your property and
the types of fines associated with past misuse.
Easements. Some properties come with rights for
others to access the property, even if you own it. This can include
utility easements, which restrict where and how you use areas of your
property so that the company has access.
The purpose of title insurance is to financially protect you and your mortgage lender
if someone makes a claim of ownership on your property due to one of
these issues. It can prevent you from being required to pay hundreds, or
even thousands of dollars, to resolve past bills that aren’t your
fault.
What Are the Types of Title Insurance?
There are two main types of title insurance. One is designed to
protect the lender if an ownership problem is large enough that you have
to forfeit the property (and no longer pay the mortgage). The other
type is meant to protect you, the owner, if it turns out someone else
has a claim against the property.
Lender’s Title Insurance
Lender’s title insurance allows your mortgage lender to recoup the
principal balance of the mortgage in the event you no longer own the
home due to an ownership claim.
For example, there might be an heir to the home that didn’t realize
they had ownership. Another potential issue could arise if your home was
sold fraudulently. In both cases, you don’t want to keep making
mortgage payments on a home you don’t own. The lender can’t foreclose on the house to force you to pay in these cases, either.
With lender’s title insurance, the lender can file a claim with the
title insurance company and receive the money it expected to get from
you over the course of loan repayment.
Owner’s Title Insurance
Owner’s title insurance protects you, the homebuyer, in these
circumstances. If a previous owner didn’t pay property taxes or if they
owe money to a contractor for building an addition to the home, you
don’t want to be on the hook for these costs.
If you’re covered by an owner’s title insurance policy, a claim can
help you pay these costs. The title insurance company will pay off the
amounts owed, clearing the ownership claims to the property and saving
you from having to pay steep bills to stay in the house.
Unlike lender’s title insurance, which is usually required when you
buy a home, owner’s title insurance is often optional. In some cases,
the seller might even be responsible for paying the one-time owner’s
title insurance premium.
What Is Covered With Title Insurance?
While a title search is supposed to catch most issues so they can be
resolved before you close on the home, a search might not catch
everything. Title insurance kicks in when something comes up later.
Perhaps a neighbor instigates a boundary dispute, and it turns out there
was a property survey error. Your title insurance policy will cover
financial costs and damages associated with subsequent adjustments.
Some of the other issues that might come up after you bought the home might be related to:
Permit or building code problems from changes made by a previous owner
Inheritance issues, such as conflicting wills or a previously unknown heir
Divorce problems, including when an ex-spouse should have been able
to sign off the sale but didn’t or when a portion of the proceeds from
the home was supposed to have gone to an ex-spouse
Errors on the property deed
Documents that were recorded improperly or have errors
Fraudulent activity, such as forged documents that led to the sale
Liens placed on the property to cover unpaid property taxes, contractor bills or other lenders
If a previous owner made mistakes or the property was sold to you
fraudulently, title insurance prevents you from being held accountable
for a situation you didn’t create.
What Is Not Covered With Title Insurance?
Title insurance is designed to protect you from previous issues you
didn’t know about. For the most part, if you’d realized that these
problems existed, you might not have bought the home.
However, title insurance doesn’t protect you from issues arising from
your actions after buying the property. For example, if you decide to
build an addition and are fined because the extra room wasn’t properly
permitted and you have building code violations, title insurance won’t
cover those fines.
Additionally, title insurance doesn’t usually cover the costs when a
government entity claims eminent domain. In that situation, you’re
normally compensated for the property at the current market rate, but
that might not be enough to pay off your entire mortgage. Title
insurance doesn’t provide coverage in that situation.
Typical Costs of Title Insurance
Using research from Fannie Mae, title company First American
found that title insurance costs, on average, about 0.42% of a
property’s purchase price. However, the actual price of title insurance
varies depending on the cost of the property and the loan amount. Some
estimates say you could pay between 0.5% and 1.0% of the home’s purchase
price.
Lender’s title insurance is usually purchased by
the homebuyer and is based on the loan amount. It’s generally required
as a part of the closing process.
Owner’s title insurance is optional in some cases.
Depending on the state, the seller might be responsible for purchasing
owner’s title insurance. Even though it’s optional, you might decide to
purchase a policy for peace of mind.
The good news is that title insurance is a one-time purchase fee, so
you don’t have to keep paying over time. You pay for title insurance as
part of the closing, and you’re covered for as long as you and your
heirs own the property.
Where You Can Purchase Title Insurance
When you buy a home, the lender usually has a preferred title company
they work with. You can choose to purchase title insurance through that
company, or you can shop around.
If you’re looking for a list of title insurance companies in your area, the American Land Title Association
has a list of registered companies and a state search function. Major
title companies include Old Republic, First American and Fidelity.
Pros and Cons of Title Insurance: Is It Worth It?
Pros
Financial protection in the event that someone places a lien on the property for unpaid taxes, bills or mortgage payments
Protects you in the event of fraudulent documents or other irregularities that call into question your ownership of the property
Helps you cover costs related to easements or other issues that can impact your ability to use your property
Cons
Cost of title insurance can feel high when you’re looking at a list of closing costs.
Doesn’t cover all issues, such as eminent domain or problems that arise due to your mistakes
The seller doesn’t always cover the cost of owner’s
title insurance, so you might need to pay for it if you want the
coverage. You’re usually required to purchase lender’s title insurance
Posted By Marianne Mathieu, Past-president,
Tuesday, August 27, 2024
Home title lock insurance? Not a lock at all
By Larissa Bungo,Senior Attorney
If you’ve seen ads for home title lock insurance, they might have you
worried. After all, the ads say thieves can steal the title to your
home. But then the ads tell you to buy title lock insurance to
supposedly prevent home title theft. Stop. Take a breath. It’s just a
ploy to scare you.
First, know that “title lock insurance” is not
title insurance. If you’re a homeowner, you might remember buying title
insurance when you first bought your house. It protects you against
challenges to the title, like a lien you didn’t know about. But “title
lock insurance” is different — and it’s not insurance at all. Instead,
it’s a service that claims to monitor your deed to protect you against
title fraud. You’d only find out AFTER your title got transferred to
someone else without your authorization. So much for the lock.
Title
fraud is identity theft: someone pretends to be you and transfers your
deed to someone else. Title lock insurance (again: not a lock, not
insurance) wouldn’t stop that. And you can check your title for free
with your state’s land records office, and some areas even have a free
notification program that allows you to sign up for alerts about any
legal changes, like ownership of a property.
Here are some other steps you can take to protect yourself from identity thieves:
Monitor your bills.
If you suddenly stop receiving utility bills, that may be a sign of
identity theft. If you’re worried, contact your utility company
directly.
Get help. If you suspect identity theft, go to IdentityTheft.gov for a free, personalized recovery plan.
The New York State Land Title Association, Inc. advances the common interests of all those engaged in the business of abstracting, examining, insuring titles, and otherwise facilitating real estate transactions. The Association promotes the business
and general welfare of its Members and protects real property title holders’ ownership rights.
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