Cybercriminals have been targeting the real estate industry heavily for the past decade, tracking activities of real estate agents, loan officers and title agents to try to get their grimy little hands on individual transactions to divert funds. Efforts are being made constantly by title agents and underwriters to educate all parties in the transaction to block these efforts.
But the recent Fidelity National Financial cyberattack, reported to the SEC in November, is a real alarm. In its report to the SEC, FNF advised they were forced to block access to some systems, including services to title insurance, escrow and other title-related services, mortgage transaction services, and technology to the real estate and mortgage industries.
FNF is the largest of the title insurance underwriters, and this put real estate transactions across the country in
sudden limbo.
Systems health checkup
The Fidelity breach is a painful reminder of how important it is to have a comprehensive security plan in place and more importantly, to conduct a systems health checkup every year. Security systems have improved dramatically over the past decade and title companies can’t rely on old technology and old systems to protect their data.
If you are considering jumping into the title business in 2024 through a joint venture or affiliated business arrangement, technology and the security systems that protect that technology will be one of the most important aspects you will want to address. With this risk element of technology, a title company is more expensive to operate than it used to be, but it’s unavoidable. You will want to consider three aspects: users, software and protocols.
Users
Protecting the systems in a title company is everyone’s responsibility. Your first line of defense is a strong IT
department or a reputable IT provider who you have carefully vetted to ensure they have the most updated security.
But you can’t rely solely on your IT staff, wishing and hoping they will catch and stop cyber intrusions into the system. The entire staff should be thoroughly educated on how to reduce exposure by being careful – for instance – about what websites they can visit, or what software they download. Everything should be checked through the IT team.
It goes without saying that the entire team should also be well-versed in phishing schemes and constantly educating customers to ensure they understand how to prevent wire fraud.
Software and Systems
Ensuring you are protecting your systems and that your software itself carries the most updated security measures is fundamental.
Anti-virus software
Choose a comprehensive anti-virus program and make sure you are reviewing the capability of your program each year. Always update your programs when prompted as updates address new threats recently identified.
Firewalls
Firewalls protect your network systems by preventing malicious software from accessing your computers or network via the internet.
Virtual Private Network (VPN)
For industries like title insurance and real estate where staff may be working offsite or on the go, VPNs provide a very secure pathway for employees to access company systems while staying safe from cyber intrusions.
Multi-factor authentication
I can’t stress this one enough. Multi-factor authentication is simple, though a little annoying day-to-day, but SO
important and the first line of defense. It requires that a user provides two or more different authentication methods to gain access. Like when you verify a code in a text message or authenticator app. This could be a password followed by code or token provided through another device. It could also be a fingerprint or facial scan.
Protocols
Implementing strict protocols for your employees and for your IT team is vitally important so everyone knows how to prevent cyber intrusions and more importantly, what to do if they detect an intrusion or an attempted intrusion. At TitleEQ, we are dedicated to improving the entire title and closing process through technology. If you are thinking about getting into the business we can assist you with your venture. Contact us today to learn more!