Imagine running a busy real estate brokerage. You’ve got agents, listings, deals—all moving fast. Now imagine waking up one day to find that nearly $2 million meant for your clients and transactions disappeared. Poof. Gone.
Sounds like a nightmare, right? Well, it happened to one brokerage, and their story is a serious wake-up call about cybersecurity.
What Went Wrong?
It started with a simple phishing email—a fake message pretending to be from a trusted partner. One agent clicked a link without realizing it was a trap. That click gave hackers a backdoor into the brokerage’s email system.
From there, the cybercriminals monitored emails and waited for the perfect moment: right before a huge wire transfer. Then, they sent fake wiring instructions to the client. The client, trusting the email, sent almost $2 million to the hackers’ account instead of the brokerage’s.
Why Did This Happen?
- Lack of Two-Factor Authentication (2FA): The brokerage’s email accounts didn’t have this extra security step, making it easier for hackers to get in.
- No Training: Agents weren’t trained to spot phishing scams or suspicious emails.
- No Verification Process: The client never called to verify the wiring instructions.
How Could It Have Been Prevented?
- Use Two-Factor Authentication: Adds a second step to verify identities, like a text code.
- Train Your Team: Regular cybersecurity training helps agents spot phishing and scams.
- Verify Wire Transfers by Phone: Always confirm wiring instructions verbally before sending money.
- Secure Email Systems: Use encrypted email and monitor for suspicious activity.
What Happened Next?
Thankfully, the brokerage caught the scam quickly and worked with their bank and the FBI. Some money was recovered, but the damage to their reputation and stress was enormous.
They’ve since revamped their cybersecurity policies—adding training, better tech, and strict wire verification.
Final Thoughts
This story isn’t to scare you—it’s to remind you that cybersecurity is real, urgent, and necessary in real estate. One click can cost millions and years of rebuilding trust.
Don’t wait for a crisis. Protect your brokerage, your agents, and your clients today. Because when it comes to cybersecurity, it’s always better to be safe than sorry.