Top 5 Cybersecurity Issues for Title Professionals
Today’s title professionals face ever-increasing cybersecurity threats, all of which can cause major disruption and economic loss. With October being Cybersecurity Awareness Month, now is the perfect time to review the latest trends affecting our industry and understand how to mitigate some of the top challenges.
I. Wire fraud remains number one
Wire fraud continues to be the number one threat to title agents, their customers and the vitality of their business. According to the latest FBI reports, the average cost per wire fraud incident is nearly $200K, and the total number of incidents recorded this year will likely break records.
- Use multi-factor authentication (MFA) for system access.
- Ensure the latest security patches are promptly installed. Read our tips on keeping programs updated consistently.
- Consider upgrading your antivirus protection with endpoint detection and response (EDR), a dynamic tool that leverages AI technology to reinforce your security.
II. Watch out for fraudulent sellers
Seller theft, one of the most significant emerging threats, involves a scheme where the seller’s identity is falsified, leading to a bogus and fraudulent sale. There is no shortage of information online regarding real estate transactions, making it easy for thieves to obtain these details. Here are some of the best strategies for combating these fraudsters:
- Use encryption to protect communications and all identifying information, including emails and data that is “at rest,” that is, data housed physically on a given computer storage device.
- Verify and validate identification through available electronic tools.
- Confirm and reconfirm throughout every step of the transaction. Slow down. Take time to verify.
To reduce fraudulent transactions and lower premiums, Alliant National has initiated a crime watch program, which incentivizes policy-issuing agents to detect and prevent illicit activity. Learn more about the program and get involved.
III. Privacy remains the focus
Ten states have now enacted comprehensive privacy laws. Six have passed laws this year alone, with Texas being just the latest to do so. All 50 states now have data breach reporting laws. Many statutes impose a significant daily fine for late notice or a private right of action for failure to comply and negligence.
What all these legislative moves imply is that privacy and sensitive data protection remains at the forefront of our industry. Title leaders must ask themselves if they are staying current on the latest technologies and techniques to guarantee end-to-end data protection, including:
- Developing a written security plan and devoting the necessary time and resources to ensure employees are trained sufficiently. maintaining complete records is important as well.
- Encrypting sensitive and non-public information, which is essential to protect against unauthorized access and breaches.
- Knowing and abiding by your state-specific breach reporting requirements.
IV. Practice secured electronic document storage
Title agencies routinely deal with electronic documents that contain large quantities of sensitive information and which represent a highly attractive target for today’s criminals. In fact, according to recent research, “88% of organizations worldwide were experiencing spear-phishing attempts in 2019. And 68% of business leaders felt their cybersecurity risks were drastically increasing.”[i]
Here are some principles to help keep these bad actors at bay:
- Ensure you are applying encryption to protect digitally stored documents.
- Perform periodic backup and recovery tests to ensure the availability and integrity of stored records.
- Maintain and test disaster recovery and business continuity plans.
V. Adhere to all regulations
Regulatory compliance requirements have increased and will continue to evolve to address shifting cybersecurity and consumer privacy issues. Stay abreast of some of the most pressing changes to the landscape:
- The current patchwork of complex state privacy and data breach laws is expected to continue growing without any expected federal legislation.
- The Gramm-Leach-Bliley Act (GLBA) has been updated for the first time since the early-aughts to address data security and privacy. Modifications to the law’s security safeguard rules are going into effect in June 2023 and will be enforced by the Federal Trade Commission.
- The National Association of Insurance Commissioners (NAIC) has released a draft of proposed 2023 privacy protection requirements modeled after the California Consumer Privacy Act (CCPA) and the New York State Department of Financial Services (NYDFS).
Taking action can keep you safe
Wire fraud. Seller falsification. Regulatory compliance. It seems like every day there is a new thing for the busy title agent to worry about. Staying apprised of the latest news and best practices, however, can help, as can seeking out the expertise of an experienced technology provider. Taking these steps, along with carrying comprehensive insurance for cybercrime and liability, can reinforce your security posture for maximum protection.
For more tips on building a safe and secure title operation, check out our other blogs focusing on IT.