CISO Corner: Sleigh fraud this season with these cybersecurity tips for REALTORS®
At a glance (4 minute read):
- Be alert for wire transfer fraud, phishing attacks, and title/mortgage fraud, which spike during the holidays.
- Verify identities, educate clients about scams, secure communication channels, and follow PCI compliance for credit card payments.
- Avoid public Wi-Fi, secure devices with MFA, limit data access, and stay informed about local data privacy laws.
- Advise clients to confirm payment instructions and report fraud immediately to law enforcement and financial institutions.
Welcome to the first edition of CISO Corner, a new quarterly feature for Greater Vancouver REALTORS® (GVR) members. In each column, I’ll share practical advice, emerging trends, and best practices to help protect your business and clients from cybersecurity threats.
As real estate professionals, you handle sensitive financial and personal data, making you a prime target for cybercriminals. This column is designed to equip you with the knowledge and tools to stay ahead of these threats.
Alongside our practical tips, we’ll provide trusted resources from industry experts that offer deeper dives into the topics we discuss, helping you and your clients stay informed and secure.
In this inaugural column, we’ll focus on seasonal scams. From wire fraud to phishing attacks, these holiday-season scams can disrupt transactions and harm reputations if left unchecked. Let’s explore the most common threats, how to mitigate them, and tips for securely working from out of the country.
- Ken Allison
Chief Information Security Officer (CISO), GVR
Safeguarding against seasonal real estate scams
1. Prevalent seasonal scams
Wire transfer fraud
Scammers impersonate real estate agents or title companies, sending fraudulent emails with altered wire instructions to divert funds. This type of fraud often spikes during the holiday season.
Read more: Lifelock by Norton
Phishing attacks
Cybercriminals send emails that appear to be from trusted sources, aiming to steal sensitive information or install malware. These attacks often increase during busy periods.
Read more: RE/MAX Blog
Title and mortgage fraud
Fraudsters use stolen identities to transfer property ownership or secure loans against a property without the owner’s knowledge. This type of fraud is becoming increasingly common.
Read more: CBC News
2. How you can protect yourself
Verify identities
Always confirm the identities of all parties involved in a transaction through multiple verification methods. Be cautious of clients unwilling to meet in person or provide original identification documents.
Read more: Law Society of Ontario
Educate clients
Inform clients about potential scams, especially wire fraud. Encourage them to verify any changes in payment instructions through direct communication channels.
Read more: National Association of Realtors
Secure communication channels
Use encrypted email services and secure document-sharing platforms to protect sensitive information. Avoid sending confidential details over unsecured or public networks.
Look for red flags
Keep an eye open for unusual transaction patterns, such as clients rushing the process or offering unusually high deposits. These can be indicators of fraudulent activity.
Read more: Real Estate Magazine
Follow PCI best practices
If your business processes credit card payments, ensure compliance with Payment Card Industry Data Security Standards (PCI DSS).
- Use secure payment terminals and reputable third-party processors.
- Restrict access to cardholder data and ensure systems are regularly updated.
- Train staff to recognize fraudulent card transactions.
Read more PCI Security Standards Council
3. How to keep safe when working outside of the country
Avoid public Wi-Fi
Public Wi-Fi networks, such as those in airports or cafes, are often unsecured. Instead, use your phone’s hotspot or a portable secured network device when working remotely.
Secure your devices
- Ensure your laptops, phones, and tablets are updated with the latest security patches.
- Use strong passwords and multi-factor authentication (MFA) for all accounts.
- Carry and use a physical security key for MFA if possible.
Limit data access
Only access data necessary for your work and avoid downloading sensitive files onto your device. If possible, use cloud services that meet security standards for storing and accessing files.
Research local laws
Be aware of data privacy regulations in the country you are visiting to ensure compliance. Some countries may require additional security measures or restrict the use of certain tools.
Watch for phishing emails
Be vigilant about suspicious emails, as cybercriminals often target individuals they know are travelling, sending fake “access issues” or “urgent action required” messages.
4. Advice for clients
Confirm payment instructions
Before transferring funds, clients should verify payment details directly with their agent or title company using known contact information. This step is crucial in preventing wire fraud.
Be skeptical of unsolicited communications
Clients should be wary of unexpected emails or calls requesting personal information or immediate action. They should verify the legitimacy of such requests independently.
5. What to do if you’re targeted
Report immediately
Contact local law enforcement and the Canadian Anti-Fraud Centre to report the incident.
Notify financial institutions
If funds have been transferred, inform the involved banks promptly to initiate recovery procedures.
Document everything
Keep detailed records of all communications and transactions related to the suspected fraud.
By staying vigilant and adhering to these best practices, we can protect ourselves and our clients, whether we’re working from home or abroad. Let’s work together to ensure a safe and secure real estate environment.