A real estate transaction generates a significant amount of sensitive information. Your financial statements, tax returns, bank account numbers, Social Security number, and personal identifying information all flow through email, online portals, and digital documents. Protecting this information requires attention to cybersecurity throughout the process.
Protect Your Email Account
Your email account is the most vulnerable point in the transaction. A compromised email account gives criminals access to every communication about your home purchase or sale. Use a strong, unique password that you do not use for any other account. Enable multi-factor authentication, which requires a code sent to your phone in addition to your password. Be suspicious of any email that asks you to click a link, download an attachment, or provide login credentials.
Be Careful With Attachments
Real estate transactions involve many attachments: loan estimates, disclosure documents, inspection reports, and contracts. Criminals use malicious attachments to install malware on your computer. If you receive an unexpected attachment, even from someone you know, verify with the sender before opening it. Legitimate professionals will not send unsolicited attachments containing malware.
Watch for Changes in Communication Patterns
Pay attention to changes in how your real estate professional communicates. If your title officer suddenly starts sending emails with a different tone, different formatting, or requests for information they have never asked for before, that is a red flag. Criminals who have compromised an email account may accidentally reveal themselves through subtle changes in communication style.
Use Secure Portals When Available
Many title companies, lenders, and real estate brokerages offer secure client portals for sharing sensitive documents and information. These portals encrypt your data in transit and require a login. Using a secure portal is significantly safer than sending sensitive information by email. If your professionals offer a portal, use it. If they do not, ask them about more secure options.
Monitor Your Accounts
During and after your transaction, monitor your bank accounts, credit card accounts, and credit reports for any unusual activity. A data breach during a real estate transaction can lead to identity theft months or even years later. You are entitled to one free credit report per year from each of the three major credit bureaus. Consider freezing your credit if you are not planning to apply for new credit in the near future.
Know Who Is Asking
Be cautious about who is asking for your personal information. Your lender needs your tax returns and financial statements. Your title company needs your identification. But if someone you do not recognize asks for sensitive information, verify their identity before providing anything. Call the company at a phone number you already have, not a number provided in the request.
Cybersecurity during a real estate transaction is about awareness, caution, and verification. The professionals you work with have systems in place to protect your information, but you are the last and most important line of defense. A few minutes of caution can prevent years of headache from identity theft or financial fraud.
