Eight reasons why cyber threats are now a key risk for property practices By Simone Herbert-Lowe, Director, Law & Cyber
Professional obligations have always evolved to meet clients’ changing needs. For property professionals including lawyers, conveyancers and real estate agents, a transformation in the way that business is conducted means that managing cyber risk is now a key business and professional risk. Here are eight reasons why. 1. For many years protecting clients against fraud has been part of practitioners’ duty of care
apparent onus on the person paying the money to confirm the accuracy of bank account details.
Legal protections to ensure the integrity of property transactions exist through a range of measures including the witnessing of important legal documents, the use of powers of attorney to protect vulnerable owners, and rules requiring verification of identity procedures for persons in land dealings. Measures designed to prevent electronic funds transfer frauds and to protect the integrity of e-conveyancing continue this theme by adapting business practice to contemporary needs.
Second, widespread use of the internet has enabled scammers to collect information about others, including breached passwords and identity details, to access online accounts that do not have sufficient security protections and to spread malicious software indiscriminately.
2. A combination of three significant changes have led to an increase in funds transfer frauds First, changed payment procedures from cheques to EFTs (electronic fund transfers) have seen the liability of banks for payments made into the wrong bank account replaced by an 10
Third, email is now the preferred means of business communication, despite its shortcomings in security and the ease with which people can be impersonated using spoofed email addresses. While these factors apply throughout the business world, property practitioners’ and their clients are particularly exposed because of the value of property transactions. 3. If cybercrime was a country, it would be the third biggest economy in the world*
