Nearly half of all businesses (43%) are impacted by cyberattacks, according to a recent survey. Residential real estate firms, particularly smaller managing agents, often lack dedicated cybersecurity teams, making them prime targets. The survey identified phishing as the most common attack method, affecting 85% of breached businesses.
As cybercriminals’ tactics evolve, understanding key threats and how to mitigate them is crucial for protecting real estate businesses — whether managing local portfolios or high-profile developments such as Saadiyat Shores Abu Dhabi, where cybersecurity standards must align with those in other critical sectors, including finance, healthcare, and infrastructure.
Key cybersecurity risks and how to address them
Real estate businesses face a variety of cyberthreats, each requiring a specific countermeasure:
- Data theft: Hackers access tenants’ and employees’ electronically stored personal and financial information using password-cracking software. To reduce this risk, deploy multi-factor authentication, enforce regular and complex password changes, and limit access to sensitive data.
- Phishing: Cybercriminals use deceptive emails from seemingly trusted sources to trick employees into revealing sensitive information or transferring funds. Rolling out fraud and cyber training helps staff spot suspicious activity and report incidents correctly.
- Ransomware: Attackers disable critical systems, like property management software, and demand a ransom to restore access. To mitigate this, implement robust IT security measures and train employees to recognise when cybercriminals are impersonating trusted parties to steal login credentials.
- Network security attacks: Cybercriminals exploit weaknesses in internet-connected systems to find location data, IP addresses, and online tracking information. A virtual private network (VPN) can mask your IP address, making it harder for hackers to target you.
- Smart building hacks: As building management systems become more interconnected, often using poorly secured Bluetooth or Wi-Fi, they become vulnerable. Hackers can remotely seize control of security, heating, and access controls. To prevent this, provide secure Wi-Fi, regularly update all software to patch vulnerabilities, and secure internet connections.
How can real estate businesses beef up their cybersecurity?
Keeping up with new online threats and updating your security measures is a must, especially if your business handles sensitive tenant info, processes payments, or relies on digital tools for daily tasks.
Here are a few ways to protect yourself:
- Set up stronger security rules: Use features like multi-factor authentication and session timeouts to keep things locked down.
- Control who has access: Limit access to important systems and data to only those who absolutely need it.
- Test your systems regularly: Check your tenant portals and property management software for any weak spots and fix them.
- Use automated threat detection: Invest in systems that can quickly spot and react to phishing scams, suspicious logins, and ransomware.
Strategic cyberattack recovery for real estate
Despite preventative measures, no system is completely immune. A strategic recovery plan is essential to resume normal operations and minimise the impact of a cyberattack on your business and tenants.
Your recovery plan should include:
- Immediate Response: Isolate affected systems to prevent the attack from spreading.
- Assessment: Investigate to identify which systems and data were impacted.
- Communication: Transparently notify affected tenants, internal teams, and relevant regulators.
- Recovery: Restore systems using trusted, uncompromised backups that have been thoroughly checked.
- Post-Incident review: Assess gaps in your security protocols and update your strategies accordingly.
A well-prepared cyber recovery plan can significantly reduce downtime and financial losses.
Consider cyber insurance for your real estate business
If a cyberattack does happen, having the right insurance can be a lifesaver. Look for a policy that offers both first-party and third-party coverage for full protection:
- First-party coverage helps with your direct costs, like investigating the breach, covering business downtime, and even ransom payments.
- Third-party coverage protects you from lawsuits and settlement costs if others are affected by a data breach originating from your business.
