Information Security and Cybersecurity in Real Estate

With increasing threats to businesses related to the loss of tenant, purchaser, and employee information, cybersecurity is an important area that the real estate sector should proactively address. As the industry increasingly utilizes innovative technologies, such as third-party, cloud-based applications and artificial intelligence (AI), organizations, developers, and investors should implement proactive solutions to protect information while staying competitive in the technology landscape.   

Businesses often view an investment in cybersecurity as an added expense, but it can also provide a competitive advantage. With the media highlighting cybersecurity breaches daily, tenants want to see that their information is protected and will continue to be protected. Cybersecurity insurance policies can be tailored to meet clients’ needs and are a cost-effective solution compared to the potential costs of a cyberattack. Businesses with robust security measures not only have a stronger security posture, but they are also better positioned to avoid reputational damage and costly legal proceedings, which could result in significant financial losses.  

Key Takeaways 

• The real estate sector should prioritize cybersecurity, as threats can lead to data breaches and loss, impacting tenants, purchasers, and employees. 
• Implementing robust cybersecurity measures not only enhances security; it provides you with a competitive advantage while helping you avoid legal and reputational damage. 
• To safeguard against cyber risks, real estate organizations should collaborate with trusted advisors for continuous monitoring, effective risk mitigation, and strategic planning to protect their assets efficiently. 

Key Cybersecurity Tactics  

As technology advances, real estate companies must integrate proactive solutions that keep their clients, employees, and business safe. To facilitate this process, organizations should begin by assessing current processes and collaborating with a trusted advisor to identify gaps, opportunities, and risks. Other tactics include:  

Map Your Data  

Data mapping enables businesses to understand what information is being stored, where it is being stored, who has access to it, and how it is being protected. This exercise allows you to reduce risks and improve where needed.  

Look Outside Your Company  

Vendors and other partners should assess the protections they have set in place for the shared data. By requesting a Service Organization and Controls (SOC) report, businesses can better understand which controls are effective and which are not. 

Establish Internal Guidance and Protocols  

Employee training, proper policies, and risk-assessment processes are essential for mitigating threats. If employees use document storage on computer drives and mobile devices, it is important to set policies or guidelines to maintain document security.  

Avoid Overstoring Data  

The more data that is stored, the higher the probability that said data can be compromised. Storing excess information beyond what’s stated in regulations or required for a business purpose creates unnecessary risk.  

Maintain Compliance  

With ever-changing technology comes a growing list of regulations and guidance from governing agencies, making compliance critical. To maintain compliance, organizations should garner stakeholder support, educate employees, and diligently monitor systems to provide updates as needed.  

Lean on a Trusted Advisor 

Businesses often fail to act on cybersecurity until after an incident has occurred. According to the FBI’s 2024 Internet Crime Report, real estate organizations lost over $173 million across almost 10,000 victims. To mitigate potential significant losses, real estate organizations and business owners should explore various planning opportunities to safeguard their assets and develop a strategy to defend against cyber risk.  

It’s recommended to work with a third-party professional or team that can help you effectively evaluate processes, mitigate risks, and establish new methodologies to help you thrive in this evolving landscape. At EisnerAmper, we have professionals who are dedicated to keeping your business safe. From continuous monitoring to around-the-clock help, contact us below to learn how our managed IT team can proactively support you.