FundingShield: Transactions With Fraud Risk Nearly Flat From Q1

(Image courtesy of FundingShield)

FundingShield, Newport Beach, Calif., released its Q2 2025 Wire Fraud Analytics and Risk Report, finding 46.63% of transactions were flagged for issues that posed a significant risk of wire and title fraud.

That compares with 46.84% in Q1.

On average, each problematic loan exhibited 2.2 issues.

CPL issues were present in 44.43% of transactions, compared with 46.68% in Q1.

The quarter saw consistent elevated levels for CPL validation errors, found in 9.42% of transactions, specifically for data such as borrower information, vesting/vested parties, nonborrowing parties on the title, property addresses and property information. However, that compares with 10.85% for the CPL Validation category in Q1.

There were wire-related errors in 8.57% of transactions, the seventh consecutive quarter with more than 8% for the category–it stood at 8.41% in Q1.

License issues were at 1.78%, compared with 1.69% in Q1, due to entities having lapsed, terminated or suspended licenses and inconsistent data when verified with registrars, regulators and licensing bodies.

Insurance issues were at 1.33%, compared with 0.65% in Q1.

“These trends underscore the need for source data verification and the use of trusted, independently validated datasets in closing workflows,” the report stated. “Without these controls, lenders face increased exposure to fraud, compliance violations and post-closing recovery challenges.”