Mortgage fraud risk is evolving and growing because of advanced fraud techniques including generative AI (“GenAI”) and large language models (“LLMs”). As noted in a recent FTI Consulting article,1 fraudulent documents and phishing emails can now be easily and quickly mass produced with results that are almost undetectable using traditional methods of scrutiny. Indeed, the rapid growth in mortgage fraud has been well documented in multiple recently published studies:
As fraud schemes become more sophisticated, financial institutions face rising losses, increased scrutiny from regulators and investors, and higher operational costs. The challenge is substantial, but best mitigated when financial institutions enhance their fraud programs to be agile and responsive to new threats. Here we discuss the most pressing fraud risks facing financial institutions and strategies they can…
Never click on links in SMS messages or emails that claim your account has been “suspended” or that you have a “pending package,” as these are classic entry points for credential-harvesting malware.