In its annual report released on April 23, the FBI’s Internet Crime Complaint Center (IC3) noted a 33% rise in cybercrime losses in 2024, totaling $16.6 billion. While the losses are staggering, the rise in number of complaints is even more concerning

“During its infancy, IC3 received roughly 2,000 complaints every month,” said B. Chad Yarbrough, Operations Director for Criminal and Cyber, in the report introduction. “For the past five years, IC3 has averaged more than 2,000 complaints every day. As nearly all aspects of our lives have become digitally connected, the attack surface for cyber actors has grown exponentially. And with today’s technology, it can take mere taps on a keyboard to hijack networks, cripple water systems, or rob virtual exchanges.”

Two areas of the report that are highly significant for the real estate transaction are the current stats on Business Email Compromise (BEC) and cyber threats.

Business Email Compromise

According to the report, BEC accounted for $2.8B of the 2024 losses, on par with 2023, and complaints were also on par with previous years at 21,442.

Well known to title agents, BEC is a type of cybercrime where illicit actors insert themselves into a real estate transaction by impersonating participants in the deal, tricking them into sharing sensitive information or redirecting funds to fraudulent accounts.

In an effort to combat this diversion of funds, the IC3 created the Financial Fraud Kill Chain, which freezes funds for victims of fraudulent domestic and international transactions. IC3 fielded 3,020 complaints in 2024 for a total of $848.4 million in attempted theft. The agency earned a 66% success rate in freezing $469.1M in domestic funds and $92.5M in international funds.

Cyber Threats

Cyber threats, such as  ransomware, viruses and malware, data breaches, Denial of Service (DoS) attacks, and other attack vectors accounted for more than 263,455 complaints with $1.6B in losses reported.

On the good news front, phishing and spoofing complaints were down more than 30%, as title agencies and other participants in real estate transactions continue to educate staff and their customers about the dangers of this ongoing threat.

In his close, Yarbrough emphasized the critical importance of reporting these issues directly to the FBI, as they continue to build the infrastructure needed to assist individuals and businesses in combatting these ongoing threats.

Title agencies as part of their security planning should have robust measures in place to address wire fraud and cybersecurity incidents. The American Land Title Association provides in depth resources on their Information Security site, including the ALTA Rapid Response Plan for Wire Fraud Incidents, a video on how to complete an IC3 Report, and the ALTA Cybersecurity Incident Response Plan.

At FAN, we maintain the highest standards in providing title, escrow and closing services throughout Florida, and in addition, we are dedicated to protecting the integrity of the real estate transactions we manage. Contact us today to learn how we can help you with your next transaction.