We’re about to throw a few numbers at you.

According to Infosecurity Magazine, The number of data breach victims increased by 312% in 2024, totaling over 1.7 billion individuals. Most of these data breaches were caused by targeted cyber-attacks. Yikes.

Real estate investors often handle sensitive personal, financial, and property-related information, so data security is a top priority. Here's a breakdown of the data at risk and steps real estate investors can take to keep it secure:

What Data is at Risk?

• Personal Information
  • Names, addresses, Social Security numbers, and tax identification numbers of you, your residents, or your contractors.
• Financial Data
  • Bank account details, loan documents, credit card information, and transaction records.
• Property Information
  • Deeds, purchase agreements, and sensitive documents related to ownership or investments.
• Resident Data
  • Rental applications, employment verification, and credit reports collected from applicants.
• Business Data
  • LLC or business entity formation documents, vendor contracts, and property management agreements.
• Communication Data
  • Emails, messages, and correspondence with tenants, contractors, lenders, and other stakeholders.
• Passwords
  • Secure passwords to online accounts, from retail and banking to social media and management platforms.

Further Reading: Protect Your Investment Assets with 3 Simple Rules

How to Keep Data Secure

#1 – Secure Devices and Networks

Use Strong Passwords: The cornerstone of digital security, unique and complex passwords for devices, accounts, and Wi-Fi networks are non-negotiable. Remember, the more random, the better. Use a secure password manager if you’re concerned about remembering them all.

Enable Two-Factor Authentication (2FA): This additional layer of security is a must for your email, bank accounts, and cloud services. With 2FA, you'll need to verify your identity through another method, typically by phone or a secondary email account, every time you log in.

Update Software Regularly: Keep operating systems, antivirus software, and apps up to date to fix security vulnerabilities. You should have antivirus protection whether you own a Mac or a PC!

#2 – Protect Cloud-Based Data

Choose Secure Platforms: Use reputable property management or accounting software with strong encryption protocols. Don’t download or sign up for apps and programs that can’t be trusted and verified. Research any past data breaches or privacy issues.

Encrypt Files: Encrypt sensitive documents before uploading them to the cloud. You can also add password-only access to almost any document.

Back-Up Data: Regularly back up important files to secure external storage (external hard drive) or a reliable cloud provider. We recommend more than one backup, just in case!

#3 – Manage Email and Communication

Beware of Phishing: Be cautious of emails or messages requesting sensitive information or containing suspicious links. Never give your credit card, Social Security number, or other sensitive information to an unverified person.

Separate Accounts: Use separate email addresses for personal, business, and investment-related communications. We encourage you to use a “throwaway” email for online shopping, retail store sign-ups, and other accounts that send sales emails.

#4 – Safeguard Physical Documents

Use a Secure Filing System: Store sensitive documents in a locked file cabinet or safe. Your physical files should be as secure as your digital ones.

Limit Access: Restrict access to physical files to authorized personnel only.

Shred Old Documents: Properly dispose of outdated paperwork containing sensitive information with a shredder.

#5 – Limit Data Sharing

Only Share What’s Necessary: Avoid oversharing sensitive data, period. Keep it need-to-know.

Verify Third Parties: Vet property managers, contractors, and vendors to ensure they follow secure data practices. Many data breaches aren’t the fault of an individual but the company that collects data without securing it properly.

#6 – Train Team Members

Educate Staff: Train employees, partners, and yourself in cybersecurity best practices. Many local law enforcement departments offer fraud prevention seminars. Tactics change constantly, so stay keenly aware of the new ways hackers try to access your data.

Use Role-Based Access: Limit data access to those who need it for their roles.

#7 – Monitor for Threats

Set Up Alerts: Enable alerts for suspicious activity on your bank accounts or software platforms. Most will allow you to set an alert when a transaction is outside your norm or above a certain amount.

Monitor Credit Reports: Regularly check your credit report for unauthorized accounts, transactions, or inquiries.

#8 – Utilize Best Practices

Secure File Sharing: For sensitive documents, use platforms like Dropbox, Google Drive, or OneDrive with encrypted sharing.

Digital Signatures: Use secure tools like DocuSign or Adobe Sign for contracts to ensure authenticity and encryption.

Firewalls and Antivirus Software: Protect devices and networks from malware and hackers. Avoid accessing sensitive data on public Wi-Fi networks. Use a secure password/PIN/fingerprint/face ID on all devices.

A data breach can lead to financial loss, identity theft, reputational damage, and legal liability, especially if someone else’s data is compromised through your digital negligence!

Start investing with REI Nation, where you invest and we handle the rest!