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Tuesday 22 October 2019

The Leading Edge of Cybersecurity

Berkshire Hathaway HomeServices Florida Network Realty Reshaping Security

As more real estate searches and transactions move online, the threat of cyber fraud scams has put consumers and the real estate community on alert.

“Losses as a result of cybercrime are rising exponentially,” said James Lamphere, Vice President, Title & Escrow, HomeServices of America, the parent company of Berkshire Hathaway HomeServices Florida Network Realty. “According to federal authorities, there were more than 19,000 cybercrime incidents in the U.S. between June 2016 and May 2018 with losses exceeding $1.6 billion. Cybercrime incidents are increasing at over 500 percent per year.”

The fastest growing form of real estate cybercrime is a wire fraud scam that occurs during the closing stages of the home buying and selling process. In this scenario, the homebuyer receives an email, which appears to be from the real estate company or the title company, regarding funds to be wired to an account for settlement.

The email is actually from a sophisticated hacker, who is posing as someone involved in the closing process. The email looks legitimate because the hacker has hijacked the email account to obtain information about the closing. The buyer receives a genuine-looking email with information on wiring payment, but the instructions actually send the wire transfer funds directly into the criminal’s bank account. Once that happens, both the money and the criminals disappear.

To ensure a secure, efficient and collaborative environment for conducting business, Berkshire Hathaway HomeServices and Gibraltar Title Services have invested in a digital platform that provides encryption technology for document sharing between real estate professionals and their customers.

“At Gibraltar Title Services, we take the prevention of cybercrime very seriously,” said C. Dennis Luettich Jr., General Manager and Counsel, Gibraltar Title Services, a partner of Berkshire Hathaway HomeServices Florida Network Realty. “By using the Exchange Portal, we can communicate with all parties to a transaction in a secure environment. Buyers, sellers, lenders, and Realtors can communicate freely and check on the status of their closing without fear of compromise. The Exchange Portal helps reduce the threat of cybercrime since all communication is conducted securely through the Portal.”

The Exchange Portal offers a secure online venue for the collection and distribution of documents and data necessary to conduct a real estate closing. By design, information and documents are available to everyone in the transaction that needs to see it, but no one else. Since it is online, information regarding the transaction is always available. The site also allows for communications between parties without resorting to email, which is inherently unsecure.

“Our commitment to creating a culture of world-class cybersecurity is aimed at protecting the financial assets and sensitive information of our customers and employees,” Lamphere said. “We believe that providing this strong layer of defense is an obligation and is a critical component of delivering on our mission to create an exceptional customer experience.”

Berkshire Hathaway HomeServices Florida Network Realty and Gibraltar Title Services offer cutting-edge technology, expert consultation and professional guidance. For more information, call (904) 296-6400 or visit FloridaNetworkRealty.com.

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