Who Would Have Thought the Real Estate Industry Faces Risks of Cyber Security?
June 05, 2015
Recent news has been filled with cyber security issues affecting some of the most famous businesses in the world. For instance, the public was quite alarmed as Target and J.P. Morgan joined the big names that experienced data breaches. As more and more facets of life depend on the Internet, cyber security is at a heightened risk of threats. Criminals are becoming exceptionally scheming and are creating massive destruction across many industries. What began as minor losses are now ruining the future for major world entities. Even though the real estate sector seems sheltered from cyber-attacks, it is beginning to heavily rely on online data storage and shared technology. This means it is only a matter of time before a major data breach occurs.
Cyber Risks Associated with Real Estate Firms
Businesses that deal with real estate transactions house and share sensitive data. This is an invitation to criminals waiting to hack cyber security. Besides basic attacks, poor sharing practices and employee negligence provide vulnerability as well. Other problems can occur as workers associated with the industry store large amounts of clients’ confidential information. Since social security numbers, tax records, and federal identification information are hot commodities, cyber criminals are always on the prowl to steal from anywhere possible.
Real Estate Industry Breaches in the News
One of the first noteworthy security breaches in the real estate industry occurred in March 2012. Numerous sensitive documents from Employ Bridge were uncovered in a public recycling bin. An investigation revealed the paperwork was discarded by a cleaning crew without authorization from the company.
Another devastating cyber-attack affected Essix Property Trust Inc, from Palo Alto, California. The company’s computer network was compromised and involved information from its 242 apartment complexes and developing projects.
How Much Does a Security Breach Cost?
Even the smallest cyber security breach can cause countless damage. The price of an attack depends on the amount and type of data being compromised. However, the average cost of remediation may approach $8 million. This money is usually spent on forensic investigations and is used to cover loss of productivity. An interruption in the network causes an increase in expenses.
The Best Ways to Manage Real Estate Cyber Attacks
Individuals working in the real estate industry should be aware Internet usage brings many dangers. It is vital to handle sensitive information carefully and follow cyber security laws set forth by the state and federal governments. This will ensure the safest collection, storage, and utilization of data. We help companies and consumers involved with real estate transactions transmit securely and safely thereby mitigating potential risks and providing solutions for these vulnerabilities. Call Nationwide and we can tell you how to keep your clients information secure during your next closing!
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