Is Your Real Estate Business an Easy Target for Hackers? How to Protect Client Data

If you work in real estate, you are likely relying more on digital tools for online listings, virtual property tours, and electronic payments and contracts. While these technologies make transactions faster and easier, they also expose your clients' sensitive personal and financial information to new risks. This means you must be more vigilant than ever in safeguarding your clients’ data.

Protecting sensitive information is not just a recommended practice; it is mandatory for maintaining trust, your business's reputation, and for ensuring legal compliance. Laws such as the GDPR in Europe and similar privacy regulations in many U.S. states impose strict requirements for securing and protecting client information.

Real Estate Cybercrime: How Big Is the Risk?

Cybercriminals have increasingly targeted the real estate industry, causing huge financial losses. According to the FBI, in 2023, real estate-related scams cost victims over $145 million, with data breaches causing an additional $534.397 million in losses and ransomware attacks, adding another $59.641 million to the damage.

By acting quickly and using the Financial Fraud Kill Chain—a system that freezes scammers' bank accounts—the FBI successfully stopped more than $758 million in potential losses in the same year.

Common Cybersecurity Threats in Real Estate

Since real estate transactions involve handling a lot of sensitive information—names, home addresses, bank account details, credit history, and Social Security numbers—hackers find the industry especially attractive. Scammers can use this data to steal identities, commit financial fraud, or redirect money transfers into their own accounts. 

Here are some common threats you need to watch out for:

• Email Phishing - Hackers commonly pose as trusted partners—such as escrow officers or attorneys—and send fake wiring instructions through email.
• Identity Theft - If sensitive data falls into the wrong hands, identity theft or financial fraud can occur, causing significant harm to your clients and damaging your business's reputation.
• Ransomware Attacks- Cybercriminals may infect your computers or network with ransomware, locking you out of your own data. They'll demand payment (often in Bitcoin) to regain access.

Related: Small Business Ransomware: What You Need to Know and How to Stay Safe

• Data Breaches - Hackers frequently try to access cloud storage services or email accounts where sensitive data is kept. Even popular real estate apps and platforms you use daily can become targets for cybercriminals. If these platforms aren't properly secured, a breach can expose private client details, putting you at risk of legal trouble and damaging your brokerage's reputation.
• Malware - Clicking on a malicious link or downloading an infected file can install malware on your devices. Once infected, hackers can access your files, spy on your transactions, or even steal banking information.
• Fake Listings and Identity Theft - Scammers might copy your listings or use stolen agent identities to defraud unsuspecting clients. This can lead to loss of money for buyers and sellers and serious harm to your professional credibility.

Protecting Your Real Estate Brokerage: Cybersecurity Practices Every Agent Must Follow

Your company's security is only as reliable as your weakest link. That's why all agents in your brokerage should understand and consistently follow these basic cybersecurity practices. From knowing how to set strong passwords and safely share sensitive documents to recognizing common threats like wire fraud, here's what every agent needs to do to keep client information safe.

1. Secure Your Email Communications. Email is one of the most common targets for cybercriminals. Always use a strong, unique password for your email account and turn on two-factor authentication. This extra security step makes it harder for hackers to access your inbox even if they have your password.

Related: How to Prevent or Recover from A Business Email Compromise (BEC) Attack

2. Never share sensitive client details through regular email unless you use encrypted email or secure file-sharing platforms specifically designed for confidential transactions. Choose secure platforms like DocuSign, Dropbox Business, or ShareFile. These platforms encrypt files to keep them safe from hackers, and they also provide proof of access, which can help track who views or edits the documents.

3.  Protect All Your Devices. Real estate agents frequently use mobile phones, laptops, and tablets for transactions. Make sure all your devices have up-to-date antivirus and anti-malware software. Turn on automatic updates to ensure you're always protected against new threats. Also, lock your devices with strong passwords or biometric security (like fingerprints or facial recognition) and the capability to be remotely wiped if they are lost or stolen.

Related: Protect Your Business and Data if Your Phone Is Lost or Stolen

4. Be Cautious with Public Wi-Fi. Public Wi-Fi is convenient but not always secure. Hackers can easily intercept your data on these networks. If you need to access sensitive client information when you're out of the office, use a reliable VPN (Virtual Private Network).

5. Train Yourself and Your Staff. Even small real estate businesses should regularly educate themselves and their employees about cybersecurity basics. Teach everyone to recognize phishing scams, which trick people into giving up sensitive information through emails, texts, or phone calls pretending to be legitimate.

6. Limit Access to Sensitive Data. Not everyone in your office needs to see all client information. Limit access to sensitive data strictly to the people who absolutely need it. Controlling access reduces the risk of accidental leaks or misuse.

7. Have a Clear Data Security Policy and Respond Quickly to Incidents. Create simple, easy-to-follow guidelines about handling client information safely. Include steps for dealing with potential data breaches, such as who to inform immediately and how to mitigate damage.

Related: Responding to a Cyberattack - What to Do When You Get Hacked: A Small Business Guide

8. Regularly Back Up Data Always keep backup copies of critical client information. Regular back ups mean that even if your system is hacked, you'll have secure copies of your data stored elsewhere.

9.  Only share personal data with a verified source‍. If someone that's part of the real estate transaction asks for personal information about your client, such as a social security number or bank account number, ensure that person is authorized to get such information and that you're authorized to give it.

10.  Regularly Update Software and Apps. Hackers exploit weaknesses in outdated software. Ensure all software, apps, and operating systems are regularly updated with the latest security patches.

What to Do If You Suspect a Breach

If you suspect you've been involved in a breach, immediately change your passwords, inform affected clients, report the incident to authorities, and consult a cybersecurity expert, who can help you contain the damage and protect your reputation.

Related: How to Check If Your Business Is Affected by a Breach (And What to Do if It Is)

If you're looking for a quick and effective way to prevent these scenarios, consider using a specialized security solution such as Bitdefender Ultimate Small Business Security .

It's specifically designed to protect small businesses like yours from hackers, scams, and data breaches. It includes essential protections like antivirus, phishing and email security, secure VPN for remote work, and tools like Scam Copilot to immediately detect suspicious activity. Investing in solid cybersecurity measures today can save your brokerage from serious headaches—and financial losses—down the road.

Check out our plans for small businesses.