Safeguard Your Data: Security Best Practices for Title & Escrow Companies
Tags: real, realestate, software, softwaredevelopment
Published: 2023-12-13 13:18:28


In an age where data breaches and cyber threats are becoming increasingly sophisticated, the real estate industry, and in particular, the title and escrow sector, find themselves at the forefront of these challenges. The FBI's Internet Crime Complaint Center (IC3) reported that in 2022, the Real Estate Closing Software industry suffered losses exceeding $396 million due to business email compromise (BEC) scams. As the real estate closing process becomes more digitized and fraud attempts continue to rise, it's imperative for title and escrow companies to be proactive in protecting their data and their clients. In this blog post, we will explore the updated security best practices to help fortify your data security.  

Leverage Your Software Provider's Security Features
Collaborating with technology partners that prioritize data security is crucial. Ensure your software provider offers robust security features, and then actively use and promote them within your organization. Here are some key actions and features to implement:

Use Password Managers: Secure, unique passwords are the first line of defense. Password managers like BitWarden and 1Password can generate and securely store complex passwords for easy access.

Encourage Two-Factor Authentication (2FA) or Multi-Factor Authentication (MFA): Implementing 2FA or MFA adds an extra layer of security to logins, significantly reducing the risk of unauthorized access, even if login credentials are compromised.

Limit Access to Nonpublic Information (NPI): Restrict access to sensitive data only to those who require it for their job functions. Regularly review permissions and audit logs for unusual activity.

Establish Allowed IPs: Configure a list of specific IP addresses or ranges from which users can access your system, preventing unauthorized access.

Configure a Sender Policy Framework (SPF): SPF records prevent criminals from using your domain to send spoofed emails, enhancing email security.

Review Security Activity: Regularly monitor security logs for any suspicious activity, including logins, password changes, and email changes.

Raise User Awareness
Most cyberattacks involve social engineering tactics, targeting users to divulge sensitive information or click on malicious links. Educating your employees and clients on security basics and common scams is essential. Foster a culture of security within your organization to make everyone accountable for data protection. Consider the following steps:

Provide Security Training: Ensure that your staff receives adequate security training to recognize and respond to threats effectively.
Promote Awareness: Educate homebuyers and clients about the risks of wire fraud and how to identify potential scams. Include warnings in email signatures and closing instructions
Ensure Vendors Meet Security Standards
Your vendors are an extension of your brand, and their security practices can impact your business. When choosing vendors, scrutinize their privacy policies and security measures:
Research Vendor Security: Investigate what security measures your vendors have in place to protect customer data.
Vendor Reviews: Check reviews and ratings to understand their reputation regarding security practices.
Look for Certifications: Seek vendors that are SOC 2 Type 2 compliant and ISO 27001 certified, indicating a commitment to high-security standards.
Secure Your Business Through Technology
Stay ahead of fraudsters by leveraging cutting-edge technology. Your software should offer robust security features seamlessly integrated into your system:
Powerful Security Features: Look for software that provides advanced security features to protect against fraud and data breaches.
User-Friendly Design: An intuitive interface makes it easier for your team to utilize security measures effectively.

Incorporating Real Estate Estimate Tools into these updated security best practices empowers title and escrow companies to enhance their ability to safeguard data, shield their clients from potential risks, and effectively navigate the ever-changing terrain of cyber threats. By implementing these measures, businesses not only establish a robust defensive strategy but also make a strategic investment in building trust and ensuring long-term success within the dynamic real estate industry.