Real Estate’s Stake In Digital Security
As a real estate or mortgage professional, you help families with one of their biggest life purchases – their home. In doing so, you’re privy to some of the most private and personal information of those buying and selling homes.
The information handled often contains:
Social Security Numbers
Personal/Household Incomes
Credit Records
Past Year’s Tax Files
List of All Debts and Assets
Each of which, is a piece of personal information that can easily lead to identity theft, if misused or mishandled.
Why Is Paper So 20th Century? Many brokerage firms and real estate agents haven’t made the digital leap and still depend on paper files. This practice is rapidly becoming outdated and unreliable. The choice to continue using paper versus moving to digital storage is a challenge companies will have to face as technology provides innovation to streamlining industry practices.
As organizations move to paperless offices, will your firm be left behind to top-producing digital real estate offices or paperless brokerage firms? When only using hard copies, there isn’t a central access point for the information. There are a variety of problems which make relying solely on paper storage inefficient, unpredictable, and unsecured.
Paper files are only as secure as the structure they are stored in. If a box of documents is taken, all the information in the papers would be available to anyone.
When you transmit hard copy information, you are creating a security risk. Files sent via fax or postal mail, have no security failsafe from interception. If the communication is obtained by a third party, the information has zero protection from prying eyes.
What are the Advantages of Electronic Storage?
Digital storage makes it possible for an agent to work with information remotely and at the main office without removing the hard copies and exposing them to physical loss and damage (1). A digital office’s productivity can increase leaps and bounds:
Easily sort and organize client files
Transfer information to coworkers
Central access point for all users
Ability for multiple backups in file storage
Protection from incidental damage
Each step in a transaction, (buying, selling or financing) sensitive information is collected and used. Electronically converting your paper files also allows you to add new levels of security and functionality to your business and these private documents.
Digital Risks
What are the risks and pitfalls your office can face when going completely paperless? Converting your office’s records to a digital platform can get risky. While you’ll never have to worry about spilt coffee ruining forms, digital data’s survivability can also be an Achille’s heel.
Simply because the files are stored on a digital format, doesn’t mean that they’re secure. It’s crucial that when your office converts from paper to digital, you also integrate the right security software solutions for your office.
Security Scenario: The Buyer/Seller Dilemma
When purchases are being made the Selling agent typically submits his or her offer via fax to the Listing agent. With current practices, it’s possible to start a bidding war by reading the offers prior to the designated time. The Listing agent can then make others aware of the bid amounts, which tends to create the last minute inflation of the price.
Sensitive files can be sent using email anti-theft software. Only authorized recipients may open the offer, preventing a third party from having access to personal information. The software’s rights management, can insure that the offers can only be accessed at the given time to prevent elongated bidding wars by leaked contract terms.
What Type of Security Does Your Office Need?
Finding the right security software solution for your company requires research. Solutions for a centralized large enterprise office may not be the right fit for your independent real estate agency or branch mortgage firm (2).
What digital weaknesses exist in your office? Your office may not need every bell and security whistle. Here are some solutions available when you’re ready to protect and send sensitive electronic information:
File encryption: The process of encoding a message so that it can be read only by the sender and the intended recipient. If an unwanted party happens to intercept an encrypted message (unless they have somehow gotten the encryption keys) they will not be able to decipher the message.
Rights Management Controls (or DRM): Ensure that only authorized persons can have access. Documents can be protected from being printed, screen capture, and cut/copy/paste functions, thereby helping stem the leakage of information beyond your designated clients or co-workers.
Email Anti-Theft: A document security solution that integrates with common email tools like Microsoft Outlook. Email Anti-Theft software enables email authors to send documents and messages with rights management controls and encryption.
For most small and medium business, email anti-theft will be the most sensible solution. Email anti-theft programs are invaluable across the board, especially to offices with people telecommuting. Email anti-theft software users can send encrypted messages with a wide array of digital rights that can prevent data misuse.
When contacting clients from home or the office, an agent will be able to utilize the software to keep all communications with the client and main office secure.
For example, if the information is stored on a laptop, portable hard drive, or USB drive, which lacks security software (3), it’s as vulnerable as a paper file sitting out unattended. If the portable device was stolen your office’s information would be up for grabs.
However, with encryption the information is protected even if someone else obtains the file. Encryption secures not only the data but the trust your clients have in your agency’s ability to protect them.
Time Sensitive Documents
When dealing with documents that must be kept on file for a specific number of years and then deleted, it can be difficult to make sure the records are disposed of at the right time and not left behind and kept on file by accident.
The real estate and mortgage industry is time-sensitive. Prices of homes and their loan rates ebb and flow based on the economy, event or hot news story in the area. When buyers and sellers are negotiating terms, time is of the essence when responding.
Rights controls set up by an email anti-theft software solution can allow your office to specify a period of time that the file may be accessed and by whom. And once the offer response period is over, the document could no longer be viewed.
Future of Real Estate and Mortgage
The difficulties in keeping up with competing real estate agencies or brokerage firms who’ve converted to a digital office will become increasingly difficult every month or week you wait. If your company fails to recognize the change, more adaptable and fluid offices will gain leverage in your territory.
Firms who don’t provide secure data storage are sure to be left in the wake of paperless offices. Email anti-theft software that provides encryption must be implemented to keep the integrity of files insured. Your clients expect and deserve to have their personal information protected when it is entrusted to you.
By Stacy Grover