Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Real Estate Technology

Hackers are now targeting real estate transactions

We all know that we should change our passwords frequently, but did you know that hackers are now targeting your clients’ information?

netflix

Data security has become increasingly important for the real estate industry in 2015, as cyber criminals have turned their attention to small real estate businesses, agents, and their clients.

Although news coverage tends to focus on security breaches at large companies like Target, JP Morgan, and the U.S. Postal Service, the majority of cyber attacks happen to small businesses.

Without access to vast technology and legal teams, unsuspecting small businesses are easy targets for hackers.

Your reputation and wallet are at risk

A data breach can significantly impact real estate businesses and their clients, according to NAR. Businesses are likely to incur catastrophic financial harm and face legal repercussions in the form of client lawsuits. Public disclosure of the security breach will likely affect the businesses’ overall reputation, and make recovery difficult.

bar
Commercial properties with automated or building control systems are also susceptible to hacks. Information can be plucked directly from the system and used to compromise those living or working in the building.

What are hackers looking for?

When cyber criminals hack company data, they are searching primarily for information that will identify specific individuals. With access to credit cards, bank account information, login credentials, email-address, social security numbers, and more, hackers can drain client accounts and ruin credit. Within a matter of days a person’s whole life can be turned upside-down.

Advertisement. Scroll to continue reading.

Hackers may get this information directly from business accounts, or they may try to scam clients into giving up information and money. One wire scam in particular has greatly affected the real estate industry over the last few months.

To execute the scam, hackers infiltrate agent email accounts to get information about approaching real estate transactions. When clients are ready to close on a property, the scammer will send an email requesting a wire-transfer of funds. Of course, emails are created to look like they are from the agent or title company, and clients are often fooled.

What you can do to fight back

So how can real estate professionals protect their business from cyber criminals? Agents should educate their clients about potential scams and create a privacy policy to outline how the business handles personal client information.

Explain how the business makes financial transactions, and urge each client to call their agent immediately if they notice anything outside of this norm.

Agents can improve their data security by staying up to date on legal regulations. Most data security laws are created at the state level, so there is no uniform policy across state lines. Agents must be responsible for staying in tune with any regulations that affect their business.

#hackers

Advertisement. Scroll to continue reading.
Written By

Hannah is currently a writer and student in Colorado Springs, pursuing her master's degree in Creative Writing at the University of Denver. Before becoming a Staff Writer for the American Genius, Hannah wrote website content and grant applications for a law office in central Minnesota.

Advertisement

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Real Estate Technology

Real estate transactions are being targeted by cybercriminals. One company just got sued by customers for being hacked. Are you safeguarding your company and...

National Association of Realtors

Realtor safety is of upmost importance to those in the field, especially to those at NAR. Here's how they're helping to save lives.

Real Estate Marketing

Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Homeownership

Affordability challenges continue to plague the market, further threatened by home price gains and rising mortgage rates. What will happen to homeownership and sales...

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022