You may have heard some people say that technology is a recipe for fraud. But the truth is—no matter the platform, paper or paperless, fraudsters will always try to cheat. In real sense, some current technologies like remote online notarization have become tools for combating this fraud.
This is because it helps in making online transactions more secure, trustworthy, and safe. In fact, remote online notarization is safer and secure than the old fashioned notary services or eSign. This is why you will find many real estate experts integrating remote online notarization into their day to day transaction.
According to a study by Simplifile, over 80-percent of the US population live in counties that allow eRecording. This means that realtors in more than 2,000 counties can use digital copies of real estate and within no time the county recorder can record, review and return the verified documents.
How Remote Online Notarization Can Help with ID and Document Fraud?
This current type of technology presents a scenario for secure collaboration where title agents, buyers and sellers along with the notaries create accounts in some secure environment where they can easily send, receive and as well review documents before signing and closing the real estate deal.
Besides, remote online notarization creates an extra layer of security through the application of tamper-evident seals to electronic documents. In case the document gets altered in any way, the seal gets broken and the fraudulent activity is exposed.
Remote online notarization presents a metadata locked eDocuments that provide a detailed information on who has accessed it, eSigned the same, or eNotarized it, and where and when all the actions took place.
The remote online notarization also uses the KBA—Knowledge Based Authentication for user authentication. Government issued IDs or drivers licenses are also scanned for validity. And there’s always a recording of the notarial act. This means that in case of any disagreement on any notarial act’s part, the recording can easily be retrieved to determine the power of the claims.
All the important elements of notarial act are carried through remote online notarization (RON) as well as eNotarization tools. With RON, there is the extra security of identifying the involved partners with an aid of technology—there’s a recording of the procedure to review along with electronic documents backed up with stamps and signatures that correspond to each act in the recording.
How Remote Online Notarization Can Help in Fighting Fraud?
Since the land recording system began, fraud has also existed. This has made the government agencies come up with laws geared towards preventing fraud. The inclusion of signature as well as notary seals have come up with more protection and an additional layer of safety for homeowners and lenders.
Unfortunately, title deed fraud has remained a very big issue in the real estate transactions. While there’s no known mitigation that can zero rate criminal activities, electronic recording provides an extra security that heightens the security and safety of real estate transactions.
RON presents several obstacles for fraudsters who are out to record fake title deeds. Why can RON successfully prevent hacking and fraud?
- There’s is a limited access
Access to the RON electronic recording system is exclusively controlled by the county government agencies in conjunction with some other verified third parties such as portal software providers as well as service companies whose success is fully tied to maintaining a secure environment.
- High Levels of Transparency
The first setup for submitting eRecording calls for the submitter to agree with the terms of the vendors for setting up electronic payment platforms and installing the software. This ensures that there’s a digital footprint that helps to filter out criminals who intend to commit any crime or fraud.
Besides this level of transparency there are some certain protocols as well as encryption algorithms to provide a safer digital document that the traditional paper documents lack.
- Accompanied Audit Trail
Remote Online Notarization presents an audit trail that will trace the documents from its origin from the recording process linking it back to the submitter. This is a feature that is not present to the usual digital document as well as the physical paper document.
The RON vendors are Successfully Vetted
The potential security risks that are associated with the electronic system data transfer such as data corruption, mismanagement from disgruntled or under-trained trained employees, or even malicious attacks from hackers and fraudsters, recovery issues tend to be overinflated.
Recording of false or fraud title deeds and mortgage documents via the Remote online notarization is very unlikely than with the traditional recording process. Document fraud like IDs and driving licenses is also far less to be recorded in a remote closing. Unlike the paper documents or other usual digital documents, electronic documents are less susceptible to hackers or any other form of fraud and consequently more safe and secure .
Whether you are part of the RON process like a government employee who works in the county recorder’s office or a third party business like a title deed company, utilizing these RON solutions has proved a track record of fighting fraud.
So, integrating these digital tools into the operation of your title company is a great way of improving quality control, create myriad opportunities for good customer relations as well as safe time during and after the whole process.