The insurance industry experiences hundreds of millions of dollars in losses each year as a result of fraud and theft committed by individuals who handle other people’s money. From trustees to bookkeepers to attorneys who misuse clients’ funds entrusted to them, to title agents, escrow agents and pension fiduciaries, fraud losses are often insured. The types of insurance affected by such losses include errors & omissions coverage, fidelity & surety bonds, title insurance via the associated closing protection letter provided to the lender, attorney’s malpractice, and other property & casualty products.
RynohLive® is a patented financial management and fraud prevention system. Currently optimized for the real estate settlement industry, RynohLive® ensures the integrity of financial transactions in any business setting. Since being introduced nationally in February 2009, RynohLive® has: identified defalcation, wire and ACH fraud; stopped employee embezzlements; eliminated check fraud, disbursing errors and saved its clients millions of dollars within the settlement industry. With RynohLive®, insurers can review escrow and other account activity, establish alert criteria and receive daily & monthly reports – directly and independently – identifying fraud and ensuring best practices are maintained by their insured. National and Regional Title Insurance Underwriters representing in excess of a 90% market share have tested, evaluated, endorsed, and in many instances mandated the use of RynohLive® in order to mitigate the staggering losses caused by agent defalcation/ embezzlement. For Lenders, RynohLive® will validate the integrity of the financial transaction from origination to the disbursement of funds in accordance with the closing instructions.
RynohLive® is comprised of five interrelated modules working in concert:
RYNOHPAY – a fully automated near real-time positive pay system that ensures that only validated checks are honored by the bank. RynohPay either provides automatic inputs to the clients’ bank positive pay system, or is a standalone solution for those agents whose bank does not provide that service.
RYNOHTRAX – verification and validation of user defined critical transactions, both receipts and disbursements. Typical reconciliation systems reflect only what has occurred. RynohTrax provides notification for those critical items that are not being posted to the account for either payment or credit.
RYNOHRECON – automatic daily three-way reconciliation with an embedded “Reconciliation Wizard” that identifies accounting and posting errors; timely alerts of potential issues mitigates or totally eliminates loss from fraud or error. A “Reconciliation Analysis” feature further identifies transactions whose status may represent audit or regulatory issues.
RYNOHREPORT – a comprehensive set of daily reports that enable proactive management and oversight of financial activities. One of those is the “Morning Report” – a daily analysis report of escrow account activity and integrity. Emailed to designated recipients, the report contains user defined alerts of critical transactions, reconciliation status, and available funds by file/subaccount. The “Morning Report” reflects those critical time sensitive items requiring immediate attention.
RYNOHSECURE – enables the insurance underwriter or regulator to continuously monitor and fully audit account activity on a near real-time basis. Anti-fraud algorithms, funds verification protocols, and other techniques generate alerts whenever a suspect or potentially fraudulent event is detected.
For more information, visit www.rynohlive.com