No real estate agency is too small a target for cybercriminals!
The most recent cyberthreat report from the Australian Signals Directorate (ASD) found that a cyber incident will cost a small business approximately $49,600. This is an 8% increase on the previous year.
AI-driven cyberattacks are also on the rise. Many businesses already use AI in their operations to help boost productivity and streamline processes.
But as AI’s capabilities continue to be explored, cybercriminals are also making use of this new technology.
AI can be used by cybercriminals to create sophisticated social engineering attacks and automated malware development, as well as using AI to automatically scan for network vulnerabilities.
Real estate agencies could be at risk
Real estate agents are susceptible to cyberattacks because the data they hold is seen as a very valuable commodity by cybercriminals.
Think about the kind of data real estate agents have on file: it likely contains clients’ contact details, personal data and financial information.
This is exactly the kind of information cybercriminals are after, because it can be exploited for various malicious purposes such as identity theft, financial fraud, or phishing scams.
Real estate agent and client become victims of social engineering
Cybercriminals hacked an insured real estate agent’s email and sent fraudulent payment information to one of the agent’s clients.
Believing that the email had come from their agent, the client transferred a $5,000 deposit to the cybercriminal’s account.
Later on, the client followed up with the real estate agent and asked for a receipt for the payment. This was when the agent became aware of the issue, and reported it to their IT vendor and the Australian Cyber Security Centre (ACSC).
Fortunately, the real estate agent held Cyber Liability insurance. The insurer engaged a forensic IT specialist to help the real estate agent minimise additional losses and evaluate the situation.
The insurer paid $11,756 for the forensic investigation expenses. However, the real estate agent still had to pay their client back the $5,000 that had originally been transferred as the agent’s deductible was set at $5,000.
What this means is that instead of paying a $5,000 excess to the insurance company, they paid the $5,000 back directly to the affected client who had been targeted in the first place.
This real-life claim example shows the benefits of having Cyber Liability insurance to quickly and efficiently deal with a cyberattack.
Protecting businesses
All businesses should take proactive steps to protect their assets from cyberattacks. This is especially true for businesses that hold a lot of sensitive personally identifiable information (PII), as this can make them valuable targets to cyber criminals.
Protecting your business could require a multifaceted approach combining technology, employee awareness and financial safeguards.
Managing compliance
Recent changes to the Privacy Act 1988 mean that there is an onus on businesses to take reasonable steps to protect sensitive information.
Non-compliance can result in hefty fines, as well as damage to your professional reputation.
To mitigate risks, conduct regular data security audits, implement strong cybersecurity tools (such as antivirus software and multi-factor authentication) and ensure all staff are up to date on compliance requirements.
Having a formal incident response plan may also help you demonstrate that you’ve done your due diligence in the event of a data breach.
Educating the team
Staff are the first line of defence when it comes to cybersecurity. According to the Office of the Australian Information Commissioner (OAIC), human errors accounted for 30% of all data breaches in the first half of 2024.
Providing the team with the right training can help them identify and respond to threats to prevent a data breach from occurring.
Minimising financial and reputational damage
Cyber Liability insurance is designed to help protect businesses from claims and support their profitability in the event of a cyber breach or attack.
On top of this, Cyber Liability insurance may also be able to help businesses with the costs of data recovery and IT forensic costs.
Cyberattacks can put a huge dent in a businesses finances, but they can also damage their reputation.\
Cyber Liability insurance can help mitigate the financial burden of a cyberattack, but the extra support offered may also help to maintain clients’ trust.
A comprehensive approach to cybersecurity
Protecting businesses from cyber threats is not just about making sure antivirus software is up to date.
It’s about making sure its people have the right tools and education, ensuring they have strong cybersecurity steps in place, and that they’re able to deal with the fallout should the worst-case scenario happen.
Combining these measures can help give businesses the protection they need from evolving cyberthreats, keeping their data safe and maintaining a trustworthy reputation.
More: BizCover or call 1300 249 268
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover.
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