The Importance of Cybersecurity Risk Assessments in Real Estate

By: Trae Crosland

In today’s digital age, cybersecurity has become a major concern for business across many popular industries. While cybersecurity breaches often make headlines on the news in places just as finance or healthcare, the real estate industry is far from immune to these threats. As the real estate market increasingly rely on digital platforms to manage sectors such as, transactions, client data, property information and more they are very vulnerable to be targeted for cyber attacks.

Real estate businesses handle a vast amount of sensitive data, including financial records, property details, client information, and even innovations for their buildings that many others want to get their hands on. This wealth of data presents enticing opportunities for both cybercriminals and competitors in the same market area that are seeking to exploit vulnerabilities in digital systems. Most common cyber threats facing the real estate industry include data breaches, phishing attacks, and ransomware leading to unauthorized access.

Cybersecurity risk assessments are the proactive measures undertaken by real estate businesses in order to identify, evaluate, and mitigate these potential cyber threats. Conducting a risk assessment enables real estate businesses to pinpoint vulnerabilities in their digital infrastructure, including outdated software, inadequate encryption protocols, or weak authentication systems. By evaluating potential impacts of cybersecurity threats on business operations, a real estate company can prioritize mitigation efforts and allocate resources effectively. Many jurisdictions also impose regulatory requirements mandating the protection of sensitive client data. These assessments help ensure compliance with relevant laws and regulations c reducing the risk of fines or legal issues.

Once vulnerabilities are identified through a cybersecurity risk assessment, these businesses can implement mitigation strategies. I recently was given the opportunity to work for a real estate company in their IT department and got first hand experience with one of way we thought of keeping customer information safe. We were able to use a system that allowed an individual in one of the residential buildings to log in to their accounts on Netflix, Hulu, or any other streaming service, and once they are done their information is swept off of the system. This assures no other resident will have access to their services, all while giving them more accessibility and options for entertainment.

Other ways we may see this would be with having a secure network infrastructure. Implementing strong network security measures, which include firewalls, intrusion detection systems, and encryption protocols to safeguard sensitive data transmitted over the network. I saw this first hand as there were regular updates to passwords every 5 days and patch softwares that came with this reset to address vulnerabilities and ensure the security of the infrastructure.

In an increasingly digital world, cybersecurity risk assessments are essential. They help safeguard real estate businesses against a variety of threats that come from the advancements of technology. By proactively identifying these vulnerabilities, assessing even the potential risks, and implementing strategies, companies can protect their sensitive data. Investing in cybersecurity in today’s society is not just a good business decision, but it is a more critical imperative for ensuring long term success and sustainability in our evolving industry.

Sources:

“Real Estate Cybersecurity: A Rising Risk,” by Rami Essaid, published on Forbes, September 15, 2021. https://www.forbes.com/sites/forbestechcouncil/2021/09/15/real-estate-cybersecurity-a-rising-risk/

“Cybersecurity Trends in Real Estate: What to Watch for in 2022,” by Steve Morgan, published on Cybersecurity Ventures, December 20, 2021. https://cybersecurityventures.com/cybersecurity-trends-in-real-estate-what-to-watch-for-in-2022/

“The State of Cybersecurity in Real Estate: 2022 Outlook,” by Michael Boadi, published on Security Magazine, January 10, 2022. https://www.securitymagazine.com/articles/95209-the-state-of-cybersecurity-in-real-estate-2022