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A recent report warned that conveyancing legal firms and real estate agencies are becoming prime targets for cyber criminals due to the significant amounts of money involved in property transactions, bolstering the case for businesses to make cyber security a top priority for 2023.
More than one in 10 — or 16 per cent — of legal firms have fallen victim to cyber crime on property-related transactions, the most common of which was phishing and pharming, according to a new survey conducted by InfoTrack.
Sebastian Mill, InfoTrack’s chief technology officer, said more than three-quarters (77 per cent) of respondents admitted they were most worried about their clients’ money being pocketed by digital grifters.
“Property transactions involve large sums of money, making conveyancing legal firms and real estate agencies attractive to cyber criminals,” Mr Mill remarked.
The expert explained that the majority of businesses that became casualties of cyber attacks are small operations that typically have staff focused on managing technology.
Concerningly, he noted that these firms also hold confidential information, including 100-point ID check records, such as passports and driver’s licences.
“These make them top targets for email phishing, identity theft and payment redirection scams,” he stated.
Mr Mills cited local cases where scammers have impersonated solicitors in conveyancing transactions, requesting buyers to transfer additional funds related to stamp duty to a bank account belonging to the criminal group.
He warned businesses that being implicated in such schemes has a negative impact not just on their clients, but on their operations as well.
“If your clients suffer financial loss, you could be liable, leading to professional negligence lawsuits, increased indemnity insurance premiums, and reputational damage,” he cautioned.
On the flip side, Mr Mill said that businesses are being more proactive in the fight against cyber threats on the back of last year’s high-profile cyber attacks.
Findings of the survey showed that 98 per cent of respondents had implemented cyber security measures, and almost three-quarters, or 73 per cent, stated they take cyber security “extremely seriously”.
“The safest way to ensure funds are transferred correctly and data is secure is to use an e-conveyancing workspace and a secure communication channel,” he said.
Other simple measures he recommended to boost cyber security in business operations include using an email provider that uses multi-factor authentication, using encrypted tools for client communication and investing in paid antivirus software.
With data from the Australian Institute of Criminology (AIC) showing that 30 per cent of data breaches are due to human error, Mr Mills also advised companies to hold annual cyber security training for their employees.
“There is no doubt we are approaching a period where consumers will not only ask how professionals are protecting them, but it will become an expectation of the professional’s service offering,” Mr Mill said.
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