Cyber crime in the real estate industry

in the real estate industry entails, how agents can prepare their businesses, and how Cyber Insurance can help.

WHY ARE REAL ESTATE AGENTS AT RISK?

Cyber crime has been estimated to cost the Australian economy $42 billion per year, and a few aspects of real estate businesses make them a particularly appealing target. Below we provide an overview of what cyber crime

Firstly, you’re likely to hold a lot of personal information on your clients, including bank account details and forms of identification. This type of information is valuable for cyber criminals as it provides them with an easy avenue for identity theft, where cyber criminals steal personal

CONTINUED ON PAGE 42 >> information to, generally, steal money or gain other benefits. Another reason for real estate businesses being a lucrative target is their involvement in facilitating high-value transactions, with large amounts of money passing through various accounts through settlement platforms. In addition, small businesses tend to be an easier target for cyber criminals as they may not have the resources to protect their assets and data compared to larger organisations. The combination of these factors has created the ideal environment for cyber criminals to hone in on unsuspecting real estate agents in their attempts to infiltrate their networks and systems.

WHAT COULD GO WRONG?

To demonstrate a few examples of how real estate agents may fall victim, here are a few of cyber attacks on Aon’s clients1:

An employee at ABC Real Estate2 received an email which looked like it was from their energy provider. When the employee clicked on the link in the email, malicious malware in the email proceeded to lock down the agency’s computer network.

Homey Real Estate2 sent an email to their client asking for bank account details to transfer money for a deposit. The agency received an email that appeared to have come from the client with bank account details and transferred the money into this account. It turned out that the email chain had been compromised by a hacker in the US, and the money had in fact been transferred to the hacker’s account.

Steps For Prevention

Aon’s real estate insurance expert, Peter Lynch outlines three sensible measures to reduce the likelihood or severity of cyber crime:

1. Network security: This is the first line of security that any computer system must provide to stay protected from malicious attacks. It covers the way computers are connected to the internet and protects all networkconnected equipment including laptops, servers, printers even smartphones. Common features of network security are firewalls which regulate how internet traffic can be handled or blocked from third parties.

2. Staff education: educating staff during the onboarding process and at regular intervals can help them understand the importance of cybersecurity, recognise potential threats, and adopt good security habits to help protect themselves and the company from cyber threats.

3. Multi-factor authentication: A security mechanism that requires one or more additional verification factors on top of username and password. This is an extra layer of security, making it more difficult for attackers to access sensitive information.

HOW CAN CYBER INSURANCE HELP?

Cyber insurance is designed to help protect businesses against financial losses arising from cyber crime and is important to consider for any small business with digital exposure. Every company’s insurance needs are different, so it’s essential to carefully review the potential cyber risks that your business faces.

Aon is proud to be a partner of the Real Estate Institute of Victoria