CR Magazine – Autumn 2018

Your Brokerage’s
Greatest Risk for
Cyber Crime: You
Last year, more than 143 million people
had their data exposed by a data
breach perpetrated against Equifax.
Cybercrimes against large corporations
such as Target or The Home Depot are
top news stories. However, hackers are
far more likely to target small businesses
like your brokerage. In fact, companies
with fewer than 250 employees are the
most targeted by hackers, according to
a report from Symantec.
Because of the nature of the job, REALTORS ® are often on-the-go,
using a personal phone and public Wi-Fi network, putting you and
your clients at a much higher risk of exposure.
As REALTORS ® , you’re trusted by your clients with sensitive
information, such as Social Security numbers, bank account
information and drivers’ license numbers. While you’re collecting
this data for credit checks or mortgage documents, you’re also
opening your clients up to irrevocable damage if it ends up in the
wrong hands.
Though there aren’t federal laws on data breaches that specifically
apply to brokerages, there are laws in many states, including
Illinois. State law requires companies to notify clients of a security
breach and to encrypt or destroy client data companies collect.
Yet, a survey by Manta found 1 in 3 small businesses have no type
of cyber protections, including encryption, antivirus software or
firewalls in place. If your brokerage does not have a data security
program in place, the Federal Trade Commission has five simple
principles to keep in mind:
• Take Stock – Ensure you know what personal information
you have on file.
• Scale Down – Don’t hold onto data you no longer need.
• Lock It – Secure the data your business needs.
• Pitch It – Get rid of data you don’t need.
• Plan Ahead – Create a data security plan.
Given how destructive hacking can be, cybersecurity insurance is
becoming more popular. Cybersecurity business insurance typically
has a high premium, but can work to recover costs caused by a data
breach. Here’s how you can lessen your risk of a security breach:
• Back up old emails: Criminals can use keywords from old
emails you sent five years ago against you. If you need to
hold on to older emails, consider storing them in an
external hard drive you store off network. Your office should
have a document retention and destruction policy – be sure
you’re acting accordingly!
• Use a Password Manager: Everything requires a
password now. As tempting as it is to use the same
password for everything, recall recent hacks from Best Buy
and MyFitnessPal which exposed logins and passwords for
their sites. With tens of millions of records exposed, you
may not even know that your password for another site is
easily accessible on the web. That’s why a password
manager, a service that securely stores complex
passwords for many sites, is so useful. Many password
managers offer a yearly subscription plan that typically
costs less than $ 30.
• Educate Staff: Hackers only need one click on a fraudulent
link to gain access to your entire company’s network.
Managing Brokers should reiterate the importance of being
vigilant and using good judgement online for all staff.
• Hire an IT adviser: Given Illinois’ data laws, brokerages
should ensure they are compliant and safeguarded against
possible exposure. For a smaller brokerage, using an IT
adviser may be a more affordable option than hiring
someone full time. An advisor can set up a security plan
and perform maintenance monthly, as needed.
• Check to See If You’re the Victim of a Breach: You can
type your email address into HaveIBeenPwned.com, a
website created by a software developer that checks your
account against publicly shared data by hackers.
22 Chicago REALTOR ® Magazine