As digitalization reshapes industries, the real estate sector faces major changes in managing and safeguarding information. The shift from paper-based to digital systems has introduced new cybersecurity challenges.
Real estate firms now must prioritize data and system security to defend against potential cyber threats, notes Simeon Tassev, MD of cybersecurity service provider Galix. “Many systems holding critical data, like homeowner information, are now digital, making them accessible digitally in various ways.”
He highlights the challenge of ensuring security amid the convenience of digitalization, which involves complex supply chain management. In an interview with Engineering News, Tassev identifies data security and building technology security as the two main cyber risks for real estate.
Home security systems and smart building technologies, often developed without security considerations, are particularly vulnerable to cyber attacks. Threats include identity theft, financial fraud, and unauthorized access to sensitive data.
Real estate transactions, rich in personal and financial information, are prime targets for cybercriminals. Tassev stresses the importance of understanding these risks, warning that accessible information is inevitably exploitable.
However, many real estate companies are ill-prepared to address these threats. “Real estate companies are typically small and may lack the maturity to recognize and counter potential cyber threats,” Tassev explains, noting that their focus on selling or building properties often leads to neglecting cybersecurity.
Moreover, a common misconception is that they are unlikely targets, which can result in inadequate security measures and heightened risk of data breaches. Tassev cautions that “people become targets not because they are specifically targeted, but because they are easy targets.”
Mitigating Cyber Risks
To counter cyber risks, real estate firms need a comprehensive cybersecurity strategy. Tassev recommends several measures:
- Encrypt Sensitive Data: Secure storage systems and encrypted communication channels are crucial to prevent unauthorized access.
- Educate Employees: Training staff in cybersecurity best practices is essential, as human error can undermine technical controls. Regular awareness programs help employees recognize and avoid threats.
- Engage Cybersecurity Experts: Working with professionals to assess risks and develop tailored security measures is vital. Experts can help translate cybersecurity needs into relevant controls.
- Compliance with Legislation: Adhering to privacy laws and industry standards, like South Africa’s Protection of Personal Information Act (POPIA), is necessary to avoid legal and financial consequences.
As smart building technologies grow, securing Internet-of-Things (IoT) devices becomes critical. This includes protecting network security, endpoint protection, and access management.
Cybersecurity firms play a key role by providing expertise, tools, and technologies to enhance security measures. Effective solutions include phishing simulation, ransomware protection, and multi-factor authentication, which adds an extra layer of security. Regular data backups and robust recovery plans also mitigate ransomware impacts.
Future of Cybersecurity in Real Estate
In the next five to ten years, the real estate industry’s approach to cybersecurity is expected to mature. Tassev predicts broader application of IT security concepts like zero trust architecture, where explicit access is required for system security, ensuring only authorized users can access systems.
As digitalization continues, real estate companies must balance operations with cybersecurity. “Effective security measures shouldn’t complicate systems unnecessarily but should protect information without hindering business processes,” Tassev concludes.
