Last week, the real estate industry faced a significant disruption when Rapattoni, a California-based company providing Multiple Listing Services (MLS), fell victim to a cyberattack. This incident has left home buyers, sellers, real estate agents, and listing websites across the U.S. stymied for five days, with no clear estimate of when the crucial MLS listings will be restored.
This is Not an Outlier
It’s essential to recognize that this incident is not an isolated event or an outlier. The real estate industry, like many others, is susceptible to cyber threats. The attack on Rapattoni is a potent reminder of the real-world disruptions that cyberattacks can impose on large numbers of people or businesses that depend on a service that gets hacked.
The Need to Embolden Security
The real estate industry must take this incident as a warning and embolden its security measures. The nature of the attack on Rapattoni, widely reported as a ransomware attack, shows that criminals are targeting vital data and demanding payment in exchange for its release.
The confidentiality, privacy, and security of information must be among our highest priorities. It’s time to invest in robust cybersecurity measures, including firewalls, encryption, secure authentication, and regular security audits.
Third Party Cybersecurity
It is imperative that businesses use a third party to provide comprehensive cybersecurity assessments, penetration testing, and business continuity strategy. It’s akin to the old saying about the ‘fox guarding the hen house.’ You need someone on the outside to view your business as a hacker would.
Business Continuity Plan: A Must-Have
In addition to strengthening security, it’s crucial for real estate agents, mortgage brokers, and title companies to have a business continuity plan in place. The outage caused by the cyberattack on Rapattoni has led to delays, confusion, and a nosedive in activity in the real estate market.
A well-crafted business continuity plan (something we specialize in at Tally Ho Tech) will ensure that your operations can continue with minimal disruption, even in the face of a cyberattack. It must include alternative databases, temporary systems for posting new listings, open houses, and broker tours, and other workarounds to keep the business running.
Act Now
The cyberattack on Rapattoni is a stark reminder that the real estate industry is not immune to cyber threats. This incident is not an outlier, and we must not only embolden our security but also have a business continuity plan in place.
Let’s take this as a call to action. Let’s invest in our cybersecurity infrastructure and ensure that we are prepared to face any future threats. The ones who don’t could find themselves on the chopping block.