Real estate agencies handle sensitive financial information, personal details, and large transaction sums. This makes them attractive targets for cybercriminals. The consequences of security breaches range from financial loss to reputational destruction.

Most agencies underinvest in cybersecurity. Here’s what practical protection looks like.

Why Real Estate Is Targeted

Several factors make real estate agencies appealing targets.

Transaction values: Property settlements involve hundreds of thousands or millions of dollars. Criminals target high-value transactions.

Email reliance: Real estate relies heavily on email for transaction coordination. Email is inherently insecure and easily compromised.

Trust relationships: Agents coordinate between multiple parties—buyers, sellers, conveyancers, lenders. Each relationship creates potential attack vectors.

Small business security: Many agencies lack dedicated IT security resources. Criminals know small businesses often have weak defences.

Time pressure: Settlement deadlines create urgency that criminals exploit. Under time pressure, people make mistakes.

Common Attack Patterns

Understanding how attacks occur helps prevent them.

Business email compromise (BEC): Criminals gain access to email accounts—often through phishing—and monitor transaction communications. At the critical moment, they send fraudulent payment instructions that appear legitimate.

Phishing: Fake emails appearing to come from trusted sources trick recipients into revealing credentials or clicking malicious links.

Ransomware: Malicious software encrypts agency data and demands payment for restoration. Agencies without backups may pay or lose data permanently.

Social engineering: Criminals call pretending to be from banks, technology providers, or other legitimate organisations to extract information or credentials.

Essential Protections

Every agency should implement these baseline security measures.

Multi-factor authentication (MFA): Require MFA on all systems, especially email and CRM. This single measure prevents most account compromises.

Email security: Use business email with security features. Implement sender verification. Train staff to recognise phishing attempts.

Payment verification protocols: Never change payment details based on email alone. Always verify changes through independent phone calls to known numbers.

Data backups: Maintain regular backups stored separately from primary systems. Test backup restoration periodically.

Access management: Limit data access to those who need it. Remove access immediately when staff leave. Use unique credentials for each person.

Software updates: Keep all software updated. Security patches address known vulnerabilities.

Payment Verification Is Critical

The highest-risk moment is payment. Business email compromise attacks target this specifically.

Implement strict protocols:

• Never send payment details via email
• Verify any payment instruction changes by phone using independently sourced numbers
• Include payment verification procedures in client communications
• Alert clients to the risk of fraudulent payment instructions

These protocols should be documented, trained, and enforced without exception. The one time they’re skipped may be the time it costs someone their deposit.

Staff Training

Technical measures aren’t enough without human awareness.

Train all staff on:

• Recognising phishing emails
• Verifying suspicious requests
• Reporting potential security incidents
• Following security protocols even under time pressure

Conduct regular training, not one-time sessions. Threats evolve; training must keep pace.

Incident Response Planning

Despite precautions, incidents may occur. Preparation reduces damage.

Have a documented plan covering:

• Who to contact (IT support, insurance, legal)
• How to isolate compromised systems
• Communication protocols for affected clients
• Reporting obligations to regulators

Test the plan before you need it. Under pressure isn’t the time to figure out procedures.

Cyber Insurance

Cyber insurance has become essential for agencies.

Policies typically cover:

• Incident response costs
• Business interruption
• Data restoration
• Legal and regulatory expenses
• Client notification costs

Review coverage annually as threats evolve. Ensure your policy covers relevant real estate scenarios.

The Cost of Inadequate Security

The consequences of security failures are severe:

Financial loss: Stolen funds, ransomware payments, operational disruption Legal liability: Potential responsibility for client losses Regulatory penalties: Privacy breach reporting and potential fines Reputational damage: Trust is hard to rebuild after security failures

The investment in reasonable security measures is small compared to the potential cost of breaches.

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Linda Powers advises agencies on technology risk management, including cybersecurity measures appropriate for real estate operations.