By Carl Mazzanti, eMazzanti Technologies
Real estate offices manage a lot of sensitive data, including financial information, personal details of tenants and buyers, bank accounts, social security numbers and other items. These real estate offices, whether commercial or residential— and the people who work in them — are very attractive targets for cybercriminals. One way to manage this attraction by bad actors is to work with an experienced Managed Services Provider (MSP) that specializes in cybersecurity to protect their networks and data. This helps guard against breaches, network penetration, and the financial and reputational damage that comes from a successful cyberattack.
The real estate sector is subject to various regulatory requirements aimed at protecting consumer data and ensuring secure business practices. Cybersecurity is essential for compliance with these standards, which can vary by region and jurisdiction. Adhering to regulatory standards helps real estate offices avoid legal penalties and maintain their reputation as trustworthy entities. It also ensures that they are prepared to handle any data breaches or cyber incidents that may occur.
In 2024, for example, a cybercriminal penetrated the network of a large, California-based mortgage lender. The bad actor gained unauthorized access to sensitive information on about 17 million individuals that was stored in the company’s system. Besides suffering reputational damage, the lender also incurred more than $41.6 million of expense — net of insurance recoveries — related to the attack, according to the company’s SEC filings.
Multiple Threats
Cyberattacks against real estate companies — including phishing, ransomware, and attacks on backup files — are occurring with increasing frequency. According to a 2024 international report, almost every real estate organization has been the target of a cyberattack.
Trained experts from a trusted MSP can check your system with a “penetration test.” This test will find any weaknesses. They will then help you add strong layers of digital protection. This way, if a hacker gets through one barrier, another will stop them.
Some of these security layers use software and hardware tools, like securing payment gateways and encrypting financial data. Your MSP will protect data when it is stored and when it is sent. They will also use automated transaction monitoring to quickly address suspicious activity.
The use of IoT devices and smart building systems in real estate has made cybersecurity more complex. These devices often lack strong security measures, making them vulnerable to cyberattacks. Cybersecurity measures can protect these systems from unauthorized access and ensure their proper functioning.
Another important defense is multi-factor authentication. This adds extra protection beyond regular passwords. It requires verification through a second device, like a mobile phone. Another important step is to limit access rights, so specific employees will only see information they need for their work. They will not have access to the entire company’s data.
Backing up data often to the cloud, or another remote place is very important. This helps you quickly restore your data if a disaster happens. Additionally, your MSP should periodically train employees in cybersecurity “best practices” and then test them.
As the real estate industry continues to embrace digital transformation, working with an MSP is key to keeping client trust and supporting the long-term success and client safety of corporate real estate offices.
Carl Mazzanti is president of eMazzanti Technologies in Hoboken, providing IT Consulting and Cyber Security Services for businesses ranging from home offices to multinational corporations.