Our ability to work, travel, relax and even find human connection often relies in some way on technology. Technology gives us unparalleled access to information and convenience, but it also opens the door to countless threats. To stay secure, we must proactively educate ourselves and take protective measures.
REALTORS® occupy an important role as stewards of homeownership; the rapid, variable nature of supporting your clients through the transaction can make it difficult to be vigilant against cybersecurity concerns. However, the sensitive nature of the data handled by real estate professionals makes it especially important to practice good cybersecurity hygiene and ensure that all sensitive data is handled with utmost care.
We’ll dive into some of the most common cybersecurity scams you may encounter and shed some light on how you can safeguard yourself and your clients.
THE NUMBERS
The FBI reports that its Internet Crime Complaint Center (IC3) received over 880,000 cybercrime complaints in 2023, indicating a 130% increase in cyber-attacks from 2022. According to IC3, data breaches cost businesses an average of $4.35 million and judging by year after year increases, we can only expect those numbers to keep growing in the near future.
While the IC3 reports that estimated financial loss of cybercrime complaints in the real estate sector seemed to trend downwards significantly in 2023 when compared to the numbers estimated from 2022 and 2021, the danger remains ever looming. The best way to avoid adding to these statistics is to remain educated and vigilant in order to mitigate the risks to yourselves and your clients.
THE DANGERS
Phishing Attacks: Don’t Get Hooked
Phishing remains one of the most prevalent cybersecurity threats. Attackers send deceptive emails that appear to come from trusted sources, urging you to click on malicious links or provide sensitive information. These emails may resemble legitimate inquiries, property listings or even client communications.
The Danger: Falling for a phishing scam can result in stolen credentials, financial loss and compromised client data.
How to Stay Safe:
- Use a phishing-resistant multi-factor authentication (MFA) solution like YubiKey to protect against phishing, which is one of the most common threats.
- Verify the sender’s email address and look for inconsistencies.
- Avoid clicking on links or downloading attachments from unknown sources.
- Use email filtering solutions to detect and block phishing attempts.
Ransomware: A Digital Hostage Crisis
Ransomware involves malicious software that encrypts your data and demands a ransom for its release. Real estate professionals often store sensitive data, including financial details and personal information, making them lucrative targets.
The Danger: Ransomware can disrupt your operations, lead to data loss and incur hefty financial costs.
How to Stay Safe:
- Regularly back up your data to an external device or secure cloud service.
- Keep your software and antivirus programs updated.
- Educate your team on recognizing suspicious emails and websites.
Wire Fraud: Redirected Funds
Cybercriminals intercept email communications about wire transfers, altering the instructions to reroute funds to their accounts.
The Danger: Victims can lose substantial amounts of money, with little chance of recovery.
How to Stay Safe:
- Use encrypted email or secure document-sharing platforms for sensitive information.
- Always verify wire transfer instructions via phone calls or in-person meetings.
- Implement a dual verification system for financial transactions.
Public Wi-Fi: The Insecure Connection
Accessing client data or conducting business over public Wi-Fi networks can expose you to eavesdropping attacks. Cybercriminals can intercept data transmitted over these networks, gaining access to sensitive information.
The Danger: Data interception can lead to identity theft, financial fraud and confidentiality breaches.
How to Stay Safe:
- Use a Virtual Private Network (VPN) like NordVPN, Surfshark or Norton to encrypt your internet connection.
- Avoid accessing sensitive information over public Wi-Fi.
- Try to always work through secured networks with strong encryption.
Imposter Scams: The Wolf in Sheep’s Clothing
Imposter scams involve fraudsters posing as trusted entities, be it clients, colleagues or financial institutions. They may request sensitive information or urgent payments, leveraging your trust.
The Danger: Falling for an imposter scam can lead to financial loss and compromised data.
How to Stay Safe:
- Confirm the identity of the requester through independent verification.
- Be skeptical of urgent requests for money or information.
- Use MFA to add an extra layer of security.
Make these Cybersecurity Best-Practices Your Business Policy
Below, we’ve outlined additional tips and practices that can help you enhance your cyber safety and safeguard your digital environment.
- Practice Good Cyber Hygiene: By far the biggest vulnerability when it comes to cybersecurity is the user. Almost all cyber attacks will involve some form of social engineering, so the most important thing you can do to protect yourself and your clients is to educate yourself and your peers.
- Use Strong, Unique Passwords: Regularly update your passwords and enable MFA. Consider a more advanced, phishing-resistant MFA to add an additional layer of security.
- Keep Software Updated: Ensure your operating system, applications and antivirus programs are always up to date.
- Educate Your Team: Regularly conduct cybersecurity training to keep everyone informed about the latest threats.
- Encrypt Sensitive Data: Use encryption for emails, documents and communications containing sensitive information.
- Backup Your Data: Regularly back up important data and store backups in a separate location.
- Verify Requests: Always verify requests for sensitive information or financial transactions through independent channels.
By staying informed and implementing these best practices, you can navigate the increasingly digital landscape and protect yourselves and your clients from potential threats.
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