Cybersecurity Risks in Real Estate: Protecting Client Data in a Digital World

By Lodha

As digital transactions gain more traction, the real estate sector is also forced to grapple with very real cybersecurity risks. As a result, real estate companies are prioritising safeguarding their customers’ sensitive data and bolstering the security of their storage systems. Doing so helps real estate companies establish trust and avoid breaches that can snowball into costly affairs. Here are some of the key cybersecurity threats the real estate market in India must deal with:

Phishing:

A single real estate transaction involves numerous parties. Normally, clients, developers, and real estate agents rely on emails to communicate effectively. However, cybercriminals are using phishing to target buyers. Phishing is an online scam wherein cybercriminal impersonate agents, developers, or buyers to trick people into revealing sensitive information. Such scams can also involve the transfer of money to fraudulent accounts.

Wire Transfers:

A looming cybersecurity threat in India is the ability of hackers to intercept emails and modify wire transfer instruction. As a result, clients or agencies end up losing substantial amounts of money. Interception and modification of wire transfers can have severe consequences during real estate transactions since such transfers deal with big-ticket values.

Data Breaches:

Real estate companies in India collect voluminous data to help with marketing and advertising. They also store information from previous transactions. Any breach of these databases could have dire consequences and lead to crimes like identity theft, fraud, and regulatory fines.

Malware and Ransomware:  

Malware is software designed for nefarious purposes and can enter your system through backdoors like unprotected devices. Similarly, ransomware attacks can include restricting access to an agency’s files and extorting payment to restore access. Such attacks are impediments, especially in time-sensitive real estate transactions.

Insider Threats:

Often a cybersecurity threat comes from within an organisation. Employees, with malicious intent or due to carelessness, can compromise data security. Providing employees unmonitored access to sensitive client information can become the primary reason for unauthorised sharing of data.

How Can Real Estate Companies in India Protect Client Data?

Use Multi-factor Authentication: One of the best ways to protect sensitive data is to set up multi-factor authentication for access to emails, client databases, and financial systems. Implementing such measures can help real estate companies and buyers protect sensitive data even if their credentials are compromised.

Data Encryption: Data encryption ensures that all sensitive client data, including emails and private correspondence, is encrypted both at rest and in transit. As a result, hackers find it more challenging to access such data even after infiltrating the system.

Employee Training: It is best if real estate companies train their employees and equip them with the knowledge needed to recognise phishing emails, setting secure passwords, and safely handle client data. Training employees via simulations and roleplay regularly can help them be ready to act when needed.

Software Updates: The right kind of software can help protect sensitive data from cybercriminals. However, if software used to keep computers running is not up to date, it can be vulnerable to outsider attacks. It is best to update software and hardware, and patch up vulnerabilities, regularly to keep data secure.

Policies and Protocol: A good cybersecurity practice is to limit access to client data to a select pool of employees. Similarly, it is best to have a safety protocol in place, including measures like multi-step authentication for wire transfers.

Adopting New Technology: Using new technology, like blockchain for increased transparency, AI solutions for identifying potential breaches, and secure customer portals for better encryption, can help safeguard sensitive data.

Adopting cybersecurity measures is yet another way for real estate companies in India to build trust amongst their clients and ensure that big-ticket transactions involving property sail through smoothly. At Lodha, we have always believed in staying ahead of the curve and safely integrating technology into our operations. Not only do we offer projects featuring impeccable construction quality and expert design, but we also take the extra step of safeguarding your data and securing transactions.