At Arcstone Financial we take your financial security very seriously. In recent years wire fraud / electronic funds transfer / cyber and email phishing fraud has continued to escalate. Due to this, we have taken measures to notify you as best as possible to ensure that you do not fall victim to such crimes resulting in great financial losses.

During your transaction, you will communicate and conduct business electronically as this is convenient and efficient. This has provided hackers and scammers new opportunities for their criminal activity. The lending industry is at the forefront of these types of scams therefore we ask that you pay extra close attention to all emails and VERIFY ALL information with Arcstone Financial via phone call by speaking with your point of contact ONLY to get confirmation of the validity of any electronic communication.

While wiring or electronically transferring funds is a common convenience, caution should be exercised at all times. Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information, and, by altering some of the data, redirect the funds to a different account. It also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. In those cases, the victim called the number provided to confirm the instructions and then authorized a transfer to somewhere or someone other than the intended recipient.

YOU ARE ADVISED TO FOLLOW THESE RECOMMENDATIONS:

1. Obtain phone numbers and account numbers only from Escrow officers or Title officers. Arcstone Financial will NEVER send you wiring instructions.
2. DO NOT WIRE or ELECTRONICLY TRANSFER funds prior to calling the designated Escrow Officer (do not speak with anyone else that you do not know at the escrow/title company) to confirm the transfer/wire instructions. Utilize the phone numbers given to you at the beginning of the transaction ONLY.
3. DO NOT CALL NEW PHONE NUMBERS given to you during the transaction or with the wiring instruction.
4. Orally confirm the transfer instruction is legitimate by phone ONLY with the escrow/title officer and confirm the bank routing number, account numbers, and other codes before taking steps to transfer the funds.
5. Avoid sending personal information in emails or texts. Only send information to Arcstone Financial or escrow/title company via secure transfer systems that require encryption.
6. Take steps to secure the system you are using with your email account. These steps include creating strong passwords, using secure WiFi, and not using free services.

If you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify Arcstone Financial at (323) 665-5000 or at compliance@arcstoneinc.com.

All other parties need to be notified as well as soon as possible such as your bank, and the Escrow Office. The sources below, as well as others, can also provide information:

• Federal Bureau of Investigation: https://www.fbi.gov; the FBI’s IC3 at www.ic3.gov; or 310-477-6565
• National White Collar Crime Center: https://www.dfpi.ca.gov
• Department of Financial Protection and Innovation: https://www.dfpi.ca.gov