We live in a time of alarming consumer vulnerability. Digital technology, casual identity verification processes, and outdated protection measures are enabling cyber-criminals to steal data, impersonate property owners, and swindle growing numbers of unwitting individuals out of their hard-earned cash. Cybercrime Magazine estimates global cybercrime to reach $10.5 trillion dollars annually by 2025. 

Now, the property theft of land and single-family homes is surging. According to the Federal Bureau of Investigation’s Internet Crime Report, the real estate industry faced 13,638 Internet crime incidents resulting in more than $213 million in losses in 2022 – a staggering 32% increase in financial losses compared to the previous year.  

Land and single-family homes, some 42% of which are owned outright, are particularly vulnerable because owners are typically unaware when a when a criminal begins a fraudulent sale for the property in question. But sophisticated criminals who routinely hack personal data, including Social Security numbers, are now exploiting consumer vulnerabilities at any and every point in the transfer of real estate, causing severe financial repercussions to brokers and title agents when buyers fail to purchase title insurance, and destroying agent integrity. 

What can industry professionals do in the face of this crisis to help strengthen both the oversight and controls necessary to thwart real estate cybercriminals? 

• Implement ‘Know Your Client’ protocols – Integrating strict ID validation measures, such as collecting multiple government-issued documents at the listing and escrow initiation stages is one way to fortify defenses. 

• Employee training - Provide regular cybersecurity training to help employees recognize potential threats or inconsistencies. 

• Multi-factor Authentication: This adds an extra layer of security, making it more difficult for cybercriminals to gain access to sensitive information. 

Only by acknowledging the vulnerabilities and implementing collaborative and proactive measures can industry professionals protect themselves and safeguard the sanctity of property transactions.