Cybersecurity in Real Estate: Tips to Help Safeguard Your Business
Key insights
Collecting and storing sensitive information — including Social Security numbers and banking information of tenants, investors, and business partners — make the real estate industry particularly vulnerable to data breaches.
Online transaction security is crucial for real estate firms, as many transactions — including rent payments and investor contributions — occur online. Given the large sums involved, these firms are prime targets for payment fraud, wire fraud, and phishing campaigns.
Incorporate other cybersecurity strategies including employee training, data privacy policies, penetration testing, and risk assessments.
Help protect your real estate company from cyber threats.
Businesses of all sizes are increasingly vulnerable to cyberthreats that can compromise sensitive data, disrupt operations, and damage reputations.
As technology evolves, so do the tactics of cybercriminals. Companies must remain vigilant and proactive in safeguarding sensitive data, protecting digital assets, promoting business continuity, and maintaining the trust of customers, partners, and stakeholders.
A single cyber incident can have far-reaching consequences, including financial losses, legal liabilities, and reputational damage. According to the Federal Bureau of Investigation’s 2023 Internet Crime Report, the Internet Crime Complaint Center received a record number of complaints in 2023, with potential losses exceeding $12.5 billion. This marked an almost 10% increase in complaints and a 22% increase in losses compared to 2022.
Potential cyber risks for the real estate industry
Protection of tenant and investor data
Collecting and storing sensitive information — including Social Security numbers and banking information of tenants, investors, and business partners — make the real estate industry particularly vulnerable to data breaches. A breach could lead to identity theft, fraud, and legal liabilities.
Secure online transactions
Online transaction security is crucial for real estate firms, as many transactions — including rent payments and investor contributions — occur online. Given the large sums involved, these firms are prime targets for payment fraud, wire fraud, and phishing campaigns. To maintain the trust of tenants, investors, and business partners, implement secure payment protocols and educate employees about potential fraud schemes, helping to prevent or limit financial losses.
Building management system security
Smart buildings use internet-of-things (IoT)-enabled systems for access control, HVAC, lighting, and security. A cyberattack on these systems could disrupt property operations, create safety risks, or lead to unauthorized access. Integrating IoT devices in building management systems increases the complexity of securing these environments, making it essential to implement strong security measures.
Regulatory and compliance risks
Various regulations and state privacy laws require businesses to protect customer data. Noncompliance can result in fines and reputational damage. Real estate firms need to keep up with changing regulatory requirements and meet industry standards.
Brand reputation and trust
Maintaining a strong cybersecurity posture is essential for preserving a company’s reputation. A data breach can erode trust with tenants, investors, and business partners, potentially leading to tenant attrition, investor hesitation, and long-term brand reputational damage. Robust cybersecurity measures can help safeguard the trust and confidence of all stakeholders.
How CLA can help with cybersecurity for real estate
At CLA, we take a holistic approach to cybersecurity, combining the experience of certified technical professionals, system administrators, and network engineers with the insights of industry-specialized professionals.
Our cybersecurity capabilities encompass a wide range of services designed to address the specific needs of each client:
- Risk assessments — Our risk assessments help identify vulnerabilities in systems and processes, allowing us to develop tailored cybersecurity remediation strategies addressing specific needs.
- Data privacy policies — We help develop and implement data privacy policies for businesses to comply with relevant regulations and recommended practices.
- Penetration testing — We conduct regular penetration testing to identify and address vulnerabilities in an organization’s infrastructure, network, and systems.
- Training — Our comprehensive training programs can educate employees about cybersecurity recommended practices and how to recognize potential threats.
- System monitoring — Continuous monitoring and regular system audits help maintain a strong cybersecurity posture.
- System audits — Evaluate if systems are secure and compliant with industry standards and state privacy laws.
- Control measures — Access control measures can be implemented so only authorized personnel have access to sensitive information.
- Incident response plans — In the event of a cyber incident, having a response plan in place is vital. We can also help develop and implement incident response plans to reduce potential damage and expedite business recovery.
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Carey Heyman
Managing Principal of Industry
Dan Resnick
Principal
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