Cybercrime in Real Estate

Cybercrime in real estate has experienced a substantial increase over the last few years. Real estate companies currently lack any federal cybersecurity laws, leaving them without a requirement to invest in information security and forcing them to independently ensure strong systems.

Moreover, research indicates that over 50% of real estate companies lack essential resources to prevent or address cyberattacks. Considering the significant monetary transactions involved in real estate, even small companies handle properties worth millions of dollars daily.

Clients entrust real estate professionals with sensitive information, including private contact details, credit card numbers, Social Security numbers, and bank account information. This information can be exploited for identity theft and fraud, making it disastrous if it falls into the wrong hands.

To delve into the topic further, what is cybercrime?

Cybercrime is defined as criminal activity aimed at computers and communication technologies. Consequently, any crimes where these technologies are used to commit online offenses are considered cybercrime.  These can be denial-of-service attacks, the spread of malware, and hacking.

Turning our focus specifically to cybercrime in real estate:

Cybercriminals love targeting real estate businesses. Real estate companies hold personal information for clients that are involved in high-dollar transactions. The fact that high-value transactions are happening every minute motivates criminals to focus on real estate companies. 

It’s important to note that the Cloud isn’t immune to cyber attacks

Signing up for a cloud-based application or provider isn’t a foolproof method of preventing cybercrime. It doesn’t start and end with the hacking of virtual networks. Computers and other electronic devices you use at home and office can also be hacked.

Considering the potential risks, data stored in the cloud isn’t completely secure from cyber extortion, unauthorized access, deletion, use, or theft. A dissatisfied employee can also cause privacy breaches. There’s a need to protect your data at all avenues.

Given this context, why is cybersecurity important in real estate?

The digital age has revolutionized business transactions. And, with better technology, the risks have increased. Real estate companies strongly depend on the internet to operate their businesses and that means preparing for possible risks. Having systems in place to handle them is crucial.

Adding to the urgency, an overwhelming number of cyberattacks targeting real estate businesses are reported daily. However, that’s just a portion because many go unreported.  Thus, no real estate professional can ignore cybersecurity. Being informed, staying vigilant, and having a mitigation plan are all essential.

To mitigate the risks, here are some steps to preventing cybercrime in real estate:

Steps to preventing cybercrime in real estate

• Act cautiously and never act on wire transfers requested via email

Adopting a “zero-trust mindset” in your computer work is crucial. Any dubious links or suspicious attachments should be deleted immediately.  They should never be opened.

• Be alert if an email has a spelling mistake. There is a higher chance it is from cyber criminals. 
• Additionally, beware of emails with a general salutation, ones requiring you to log in to an unknown website, and those demanding immediate attention should be treated suspiciously.
• One requires you to log in to an unknown website.
• An email that demands immediate attention should be treated suspiciously. 

Hackers get into the email systems of both realtors and clients.  Once they’re in, they search for essential words to work their crimes.

Wire fraud

There are a lot of real estate scams out there. The most popular thefts happen when the keyboard swindler sends an email to the home buyer.

Thieves can capture hundreds of thousands of dollars by intercepting the buyer’s deposit before it reaches the title company. The email instructs the buyer that the wire instructions have changed. And that they now need to forward the funds to a new account number. This underscores the importance of getting verification before taking action.

I think I’ve scared my clients by telling them repeatedly not to do anything without asking me. But this has actually happened several times locally. Buyers have lost thousands of dollars by following the new erroneous instructions.

• Continuously be aware of cybercrime risks.

Cybercriminals flood targeted victims with daily emails. Many emails have malicious software hidden in them. There is always a chance you may fall for such traps. The smartest of us do. So don’t change the account you’re transferring to just because you received an email. Make a quick call to confirm your understanding.

Some of the tactics that cybercriminals use include domain/email spoofing. Unsuspecting people – including you – can easily fall victim. You may see a familiar company name, but when you look at the email address, it’s something really strange. I try to make a habit of looking at the email address. That might be helpful for you too.

• Take immediate action whenever you suspect fraud. 

Every second matters when you suspect fraud. Call the bank immediately. Ask them to recall the money immediately if the funds have already been withdrawn. A complaint should also be lodged with law enforcement. You can find the contact info for your local FBI office here.

• Consider the financial implications and buy cybersecurity insurance.

Companies all over the world lose billions of dollars annually to cybercrime. Small businesses are more vulnerable so they bear the highest losses. The cost of fixing a breach may be more than many businesses can manage.  It could lead to a small business closing down. Therefore, cybersecurity insurance is essential to manage possible losses. 

These insurance plans can be customized to include vendors and customers whose data and personal information are stolen. A data breach can permanently destroy the reputation of a company. Reimbursing customers for their loss of time and money can help rebuild their trust.

Cybersecurity insurance covers:

• First-part expenses like network interruption event management as well as data restoration.
• Stolen or damaged data and software.
• Money is lost through false requests.
• Extortion and lost business deals.

• Sign up for a cloud security app/plan

Any business still using outdated hard drives, printed paper, or physical filing systems should get rid of them as soon as possible.

Outdated data storage systems are susceptible to theft, damage, or loss and they take up too much space. There are numerous benefits to moving to a cloud platform. Thanks to the many backups and better insight into suspicious behavior are just two. Further steps to enhance security include?

• Limit the use of work laptops and computers for personal tasks.
• Require employees to lock work computers each time they are not in use.
• Educate employees on the need to use strong passwords as well as how to identify phishing scams/emails.
• Schedule data backup regularly to prevent severe losses and damage in the event of a data breach.
• Limit the number of people who have access to work devices.
• Always keep your security software updated and invest in good malware and antivirus software.

4 Common Types of Cybercrimes

Cybercrimes are done through computers, laptops, and smartphones. Understanding the common ones will help you put in place strong measures to protect your business. They include:

• Phishing

This involves an attempt by cybercriminals to obtain confidential information through a spoofed e-mail address. Phishing is most commonly done through emails.  It can also be done through instant messages, phone calls, and texts. Phishing can also involve malware attacks where the victim is tricked into opening a link or attachment that has malicious software included.

• Email spoofing

Email spoofing is using email software that hides the real source of the email.  It appears like it is coming from a different/legitimate address as opposed to its true criminal source. Cybercriminals are notorious for using spoofed email addresses to convince the victim it is from a familiar, trusted source. This trick makes it easier to fool people into divulging their confidential information.

• Pharming

Cybercriminals also use a trick called Pharming.  They create a fraudulent website that is identical – or nearly identical – to a legitimate one. It makes it easy to trick unsuspecting victims into clicking the website and filling out their information.

• Malware

Malware software is any program installed on your electronic devices to cause harm.  Devices include a computer, smartphone, or laptop. Worms, spyware, viruses, ransomware, adware, keyloggers, tracking cookies, and trojan horses are all considered malware. It can affect your computer in various ways: Tracking your activities while online, hijacking or changing the computer’s primary function, and deleting or transmitting private/sensitive information.

More on hackers

Highlighting the evolving tactics of hackers, they have gotten creative, using their computers to hack your home! Smart devices and baby monitors have been a target to get into homes without going through the front door.

Conclusion

Hackers cannot be controlled.  But there is so much you can do to ensure you don’t fall for their tricks. This goes for everyone in business including the large corporations with the most sophisticated systems. Besides buying cybersecurity insurance and insisting on vigilance, you could also upgrade your identify-management and digital infrastructure. Proper preparedness reduces downtime should a breach occur.