Modus Launches Digital Earnest Money Deposit to Eliminate Wire Fraud Plaguing Home Buyers
Seattle, WA - Seattle based start-up Modus, a real estate technology company that applies cutting-edge software to title and escrow operations, announces the launch of its unique Digital Earnest Money Deposit feature. Modus has replaced the need for wire transfers with a secure, proprietary platform, similar to Venmo, that enable users to directly access their account and securely submit funds to escrow, bringing convenience and peace of mind to real estate agents and their clients during home closing. Modus is on a mission to provide a seamless closing experience to real estate agents and their clients, by disrupting and improving the escrow and title industry, and by offering the Modus platform as a complimentary service for buyers, sellers, and agents.
“This is an industry first,” said Alex Day, Modus CEO. “The Digital Earnest Money Deposit capability enables buyers to easily and securely deposit their earnest money through propriety technology built within the Modus platform.”
Wire fraud is an escalating problem in the United States. Business Email Compromise (BEC) / Email Account Compromise (EAC) is a sophisticated scam targeting people performing wire transfer payments. Fraudsters have heavily targeted the real estate sector in recent years, impacting title companies, real estate agents, buyers and sellers. Between 2015-2018, there has been a 1100% rise in the number of BEC/EAC victims involving real estate transactions and reported monetary loss.
“"Wire fraud is a hot topic. I've heard stories of a family losing $800,000. We are talking life savings type of money." Chase Costello, Windermere.
Federal Bureau of Investigation Public Service Announcement states over 1800 real estate victims were impacted in 2018 with a loss of $230 million, almost double the $120 million 2017.
Most real estate wire fraud cases go unreported in the media – and even to the FBI, so it’s more important than ever for the public to protect themselves. Many lenders, title, and escrow companies have started using encrypted emails and code words to legitimize communication between parties involved in a closing, but even encrypted emails can be spoofed. Modus eliminates the need for the wire completely.
"Building this propriety technology was incredibly complex, and this new feature is not only a huge win for Modus but also a major step forward for the real estate industry and ultimately the consumers. We couldn't be more excited and grateful to our Product and Engineering team," said Abbas Guvenilir, Modus CTO.
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ABOUT WIRE FRAUD: Wire fraud happens when a party involved in a real estate transaction (such as a realtor, lender, or even the buyer or seller) has an email account compromised through social engineering or computer intrusion techniques. Once an email account is accessed, fraudsters identify real estate parties to impersonate and request home closing funds be wired to a different account than the title/escrow company overseeing the transaction. FBI information: https://www.fbi.gov/scams-and-safety/common-fraud-schemes/internet-fraud
ABOUT MODUS: Modus was founded in January 2018 and launched their platform in July of 2018 to leverage technology to empower and serve real estate agents and their clients, focusing on title and escrow. By combining industry experts with elite engineers under the same roof, Modus is building the "Ironman suit" of home closing for all parties involved. Modus is based in Seattle, Washington and has 24 employees, in its first year of business, Modus provided secure digital closing services to more than 500 buyers and sellers. Visit www.modusclosing.com or email hello@modusclosing.com
Media Contact: Lori Randall-Scharmach, RandallPR 206-579-2448, lori.randall@randallpr.com
Downloadable Assets:
https://redbooth.com/d/6a75d23f1c1480b5 - Wire Fraud Victims Graphic
https://redbooth.com/d/9a445708621cb9a7 - Wire Fraud Lost Money Graphic
https://redbooth.com/d/8cb54798ec392ceb - Modus Founder Bio’s
https://redbooth.com/d/921d42462767fa47 - Modus Founders Photo
https://redbooth.com/d/5accff0ab85808b5 - Modus Wire Fraud Protection